Ausgrid, one of New South Wales’ major electricity distributors, has slashed its number of safety inspectors by more than half after receiving a confidential report recommending a reduction in inspections. The secret report, conducted by consultancy CutlerMerz, found that the annual cost of conducting safety inspections—$520,219—was significantly higher than the estimated cost of compensating for a permanent disability injury, which would amount to just $28,375 per year.

The revelations have sparked widespread concern among workers, unions, and government officials, raising questions about corporate responsibility and workplace safety.

Details of the CutlerMerz Report

The report recommended that Ausgrid reduce the number of inspections from 12,000 to as few as 7,000 annually, a potential 55% cut. According to CutlerMerz, this reduction could statistically result in one additional permanent disability every 40 years, costing the company $500,000. The consultancy concluded that such a reduction would be in line with Ausgrid’s regulatory obligations while saving money on operational costs.

The report was marked “For official use only” and internally circulated within Ausgrid. It was first reported by the Daily Telegraph.

Impact on Ausgrid’s Workforce and Operations

Following the report, Ausgrid reduced its team of NSW installation inspectors from 25 to 11 in September 2025. The move also included ending mandatory inspections on new or altered electrical connections exceeding 100 amps.

Dean Starkey, Senior Manager for Connections Delivery at Ausgrid, defended the changes, stating that the company has “modernised its inspection model to remove duplicated efforts with the Building Commission’s role and make connections faster and cheaper for our customers.”

Starkey clarified that the Building Commission remains the primary regulator for electrical installation safety, while Ausgrid now focuses on network safety. He emphasised that the changes do not compromise public or network safety, nor do they affect the ongoing maintenance of poles and wires.

Union Backlash

The decision has been strongly condemned by the Electrical Trades Union NSW/ACT, which warned that cutting inspections could compromise safety, particularly for new home builds. Union representatives stressed that relying on statistical calculations to justify fewer inspections is ethically questionable, as human lives and safety should never be measured purely in financial terms.

Government Response

The NSW Premier, Chris Minns, stated that his government is closely monitoring the situation. “The idea that it would be cheaper to pay out injuries than to protect your workforce is one we completely reject,” Minns said. He reiterated the state’s strict regulations under Safe Work NSW, promising zero tolerance for workplace safety compromises.

Minns further confirmed that the government would ensure that regulatory inspections and enforcement measures remain robust to prevent any risk to workers or households.

Ethical and Safety Concerns

Critics argue that the decision highlights a troubling prioritisation of financial considerations over human safety. The CutlerMerz report’s approach, which compares the cost of preventative inspections with the potential cost of compensation for injuries, has been labelled “morally and ethically dubious” by workplace safety advocates.

Experts in occupational safety stress that preventative inspections are a cornerstone of workplace safety, helping to prevent accidents and injuries before they occur. While the statistical risk of one injury every 40 years may appear minimal, it cannot justify reducing the protection measures for employees handling high-voltage equipment daily.

Broader Implications for the Energy Sector

The controversy surrounding Ausgrid’s decision has raised questions about safety practices across the broader energy and utilities sector in Australia. Observers note that prioritising cost-cutting over inspections could set a precedent for other companies, potentially undermining workplace safety standards.

Industry analysts warn that short-term financial savings achieved by reducing safety inspections may be outweighed by long-term reputational and legal costs, as well as the potential human impact of preventable accidents.

What Ausgrid Says

Ausgrid maintains that the changes were necessary to modernise inspection processes, reduce duplication, and focus resources on areas that most impact network safety. The company insists that it continues to comply with all legal and regulatory safety obligations and that public safety remains a top priority.

However, the backlash from unions, workers, and government officials suggests that confidence in the company’s safety commitment has been shaken, and further scrutiny is expected.

Ausgrid’s decision to cut safety inspectors following the CutlerMerz report has sparked a heated debate about workplace safety, corporate ethics, and the value of preventative inspections. While the company argues that its new model maintains compliance and network safety, critics warn that human life cannot be measured in financial terms.

As NSW regulators and government authorities monitor the situation, the outcome of this controversy may have far-reaching implications for workplace safety standards and corporate responsibility in the energy sector across Australia.

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