NEWS IN BRIEF A RISE AND FALL CLAUSE COULD PROTECT YOU AGAINST RISING MATERIAL COSTS The cost of materials within the electrical industry has risen a staggering average of 18.7% over the past year, leaving many operators with fixed-price contracts wondering how they will absorb these costs. Many electrical suppliers will not give prices for materials for more than two months in advance. With the cost of materials expected to further increase over the coming months, combined with supply chain issues, NECA’s Legal team are available to assist members in incorporating Rise and Fall clauses into their contracts and/or terms and conditions to mitigate risk.
MUTUAL RECOGNITION WILL LEAD TO MUTUAL BENEFITS FOR ELECTRICIANS IN SOUTH AUSTRALIA AND VICTORIA NECA welcomes the announcement that the Federal, South Australian and Victorian Governments have removed the need for licensed workers to apply and pay for an additional licence to work in South Australia or Victoria as part of the Automatic Mutual Recognition Scheme. Oliver Judd, NECA CEO, said, “as a policy advocate for mutual recognition, NECA supports the scheme’s aim of making it easier for electricians and tradespeople to work across state boundaries. This mutual recognition between South Australia and Victoria is an excellent achievement along a road towards recognition at a national level.
A Rise and Fall clause will mitigate market volatility and allow the final contract price to move up or down depending upon adjustments to the cost of materials. Contact your local NECA branch for advice on clauses that adhere to your local laws. NECA can assist with tailoring a clause for specific contracts or to complement your existing terms and conditions.
“Cutting red tape to allow electricians and other tradespeople to be able to work anywhere where the work is, is a win-win for everyone. NECA encourages all levels of government to continue the process of working towards national mutual recognition.”
PHASING OUT MERCURY LIGHTING PRODUCTS Australia is expected to commence phasing out all lighting that contains mercury or mercury products from 2022, by signing onto an international treaty called the Minamata Convention. The convention will not affect the ongoing sales, installation or operation of these lamps until supplies are exhausted. NECA sought advice from the Lighting Council of Australia to assist our members in better understanding the issue. Once supplies run out the effects will include: Fluorescent lamps: No change is expected in the fluorescent lamp market due to manufacturers and Australian suppliers already complying with the lower mercury limit requirements since 2018.
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High pressure mercury vapour (HPMV) lamps: ½
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Countries that ratify the Minamata Convention (the majority of countries globally) will no longer be able to manufacture, import or export HPMV lamps. HPMV lamps will not be able to be imported into Australia after March 2022 (noting also that no manufacturing of HPMV lamps occurs in Australia).
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The Australian Government has flagged since 2013 that it will likely ratify the Minamata Convention and it is expected that the market will continue its transition to light emitting diode (LED) luminaires. Many public street lighting luminaires and some industrial luminaires use HPMV lamp technology.
HPMV lamps imported into Australia before March 2022 will be grandfathered indefinitely and can be sold and installed until stocks are exhausted.
NECA acknowledges that given the advances in LED lighting technology, finding suitable replacement lighting options should not be a concern and will offer significant energy savings.
The global manufacture of HPMV lamps has decreased over recent years and this has caused an increase in HPMV lamp prices.
Visit www.bit.ly/lca-mercury for more information from the Lighting Council of Australia.
April 2022
