Contractors urged to exercise caution

The recent recall of faulty Avanco and PV Power branded DC solar isolators provides a harsh reminder to contractors about the importance of buying from reputed suppliers.

There is a risk that these isolators may overheat and catch fire. Although NSW Fire & Rescue has responded to only one incident linked to the faulty switches, 57 similar incidents have been reported in Queensland.

These are the same devices sold by two different companies that relied on the same manufacturing plant or equipment to develop “that one product”, says Malcolm Richards, CEO, Master Electricians Australia. The difference, he says, was DKSH (the company behind PV Power isolators) held an insurance policy for protection against recalls and Advancetech (Avanco) did not. DKSH voluntarily recalled the product and agreed to organise and pay for a replacement isolator and its installation. Advancetech slipped into liquidation following the recall. Due to liquidation, the company did not have to comply with the terms of product recall order by the Queensland Attorney-General. This meant that the electrical contractors who bought the product directly from the company have to wear the cost of replacing the product.

Buy from reputed suppliers

The pressure of reducing costs and staying ahead of the competition is forcing contractors to buy products online or from other cheaper sources, says Malcolm Richards, CEO, Master Electricians Australia. He suggests contractors should use normal wholesaler networks to purchase electrical products as it provides an extra layer of support if anything goes wrong with the product after it’s purchased.

According to the Australian Competition and Consumer Commission, the number of electrical products (used/installed by contractors) recalled so far this year is already higher than the total number of contracting products recalled in 2013.

More scrutiny

The ‘nearly national’ implementation of the Electrical Equipment Safety System (EESS) - that involves post-market testing and intervention - could lead to a short-term increase in the number of recalls, says Richards. A number of recalls are coming from proactive work from regulators and the rest are coming from cheap online purchases, he adds. This will educate the supplier industry that there is a lot more scrutiny on keeping a product up to standard during its product life cycle.

“MEA would warn extreme caution in using that (online) as an avenue, particularly because the non-traditional channels to market have been leaving a lot of our members high and dry in terms of the support following a recall.”

Recall insurance

Significant work is being done at the pre-market and post-market stages, says Richards. The focus for the industry now is on what to do after a problem has been identified with a product, he notes. Richards’ association aims to look at companies that hold recall insurance and ask regulators around the country to add a formal declaration to the EESS to define whether a company has recall insurance or has got an equivalent system where they can demonstrate a capacity to manage a full recall of their product. Then the association will recommend its members to only use these companies as legitimate suppliers. The association also recommends that contractors purchase products from wholesalers because then the due diligence falls on the wholesalers to identify which companies have got that recall capacity.

In order to provide some certainty to its members and help them protect their business, MEA has added limited recall protection insurance to its existing insurance package.