As you’ve probably noticed, electrical safety compliance isn’t going anywhere.
Fines are increasing. Incidents are rising. OSHA is cracking down.
The takeaway? Electrical safety programs are coming into focus at facilities that haven’t prioritized them in the past — and companies are investing in custom engineered power systems to keep their people and property safe.
Here’s what you need to know:
- Electrical Safety Compliance is Critical (Again)
- Non-Compliance Comes With Hefty Price Tags
- Custom Engineered Power Systems Will Become More Common
- The Top Risks to Your Electrical Compliance Strategy
- Building a Better Electrical Safety Plan
Why Electrical Safety Compliance Matters More Than Ever
Let’s start with the facts.
OSHA LOTO violations surged 29% between 2022 and 2023, jumping from 1,968 citations to 2,532 — costing businesses a total of $20.7 million for one fiscal year. That’s not a mistake. That’s an upward trend.
But fines aren’t the only thing driving home the importance of compliance. Electrical system failures cause over 50,000 fires in the US every year. These fires account for $1.3 billion in property damage annually.
Once you account for downtime, liability risk, and reputational damage… it doesn’t take a mathematician to understand why electrical safety is topping the compliance agendas of proactive businesses.
Real Cost of Non-Compliance (Beyond the Fines)
Truth be told, most facility managers approach compliance as a regulatory hoop they have to jump through.
That mentality is problematic.
OSHA fines are no joke. A serious violation can cost your business hundreds of thousands of dollars per incident. Add in legal fees from lawsuits, insurance premiums from claims, lost production from downtime or facility closures… and now you’re looking at serious financial exposure.
Not to mention human suffering.
According to OSHA data published by the Electrical Safety Foundation International, there were 1,322 workplace fatalities involving electricity recorded in the United States between 2011 and 2022. Electrical accidents killed workers in professions like construction and installation, but they were especially prevalent outside of those fields. Seventy percent of electrical fatalities occurred in non-electrical jobs.
That’s right — risk doesn’t just apply to your electrical operators.
Switchgear Is a Game Changer for Your Compliance Plan
This is what’s exciting about custom engineered power systems.
Successful facilities that are getting ahead of their compliance plans are taking a comprehensive look at their electrical systems and investing in switchgear that can meet their facility’s exact needs when it comes to load capacity, safety redundancy, and regulatory guidelines.
Partnering with a quality switchgear manufacturer is one of the best decisions you can make when building a custom engineered power solution. The right switchgear company works with you to develop a solution built around your facility’s specific electrical environment.
Why does this matter?
Safety standards such as NFPA 70E and NEC have evolved significantly over the last decade. They require facility owners to prove their switchgear is properly rated for their environment, properly protected, and properly maintained. Custom engineered solutions make that process much easier.
Top Risks Preventing Electrical Compliance Today
Okay. So where are people going wrong?
Whether you have a small facility or one large enough to need a master electrician on staff, there are several common compliance struggles:
- Old switchgear that doesn’t have the safety ratings it should
- Arc flash hazards that have not been identified or clearly marked
- Weak or nonexistent Lockout/Tagout (LOTO) programs — the leading cause of OSHA electrical violations
- Poor record-keeping of your electrical equipment and installation
- Staff operating near energized equipment who haven’t been trained on or haven’t followed strict safety protocols
It’s worth pausing on LOTO for a moment. Citation rates have been on the rise across several manufacturing sectors, with meat products (+59 citations), food manufacturing (+384 citations), and bakeries (+138 citations) being violated more often than others in the last reporting year.
Imagine how easy it would be to incur $7.5 million in penalties if you worked in the food manufacturing industry. That’s a lot of risk to carry.
Four Steps to a Rock-Solid Electrical Safety Plan
Building a robust electrical safety plan is easy when you know what to do.
Facilities that have mastered their electrical safety program aren’t doing anything groundbreaking. They start with a solid foundation, and they maintain it.
Here’s how you can get started:
Audit your existing electrical setup. Know what equipment you have, how old it is, its ratings, and where your weaknesses are. You can’t improve your compliance plan if you don’t know what you’re working with.
Replace outdated equipment. Switchgear should be at the top of your list. Custom engineered power systems allow facilities to design electrical infrastructure around their operational needs, not just code minimums.
Ensure you have a LOTO plan (and that it’s enforced). Again… this is where most facilities are earning citations. Train your staff and document your process. There is no excuse not to.
Perform regular arc flash hazard analysis. Required by NFPA 70E. These assessments define where hazardous energy levels exist on your property and help determine PPE requirements and safe work boundaries.
Maintain good documentation. During audits, you’ll be required to show up-to-date single-line diagrams, equipment records, and preventative maintenance logs. If an auditor can’t find your paperwork, they will assume it doesn’t exist.
The key to any effective electrical safety program is consistency. Once you document your processes and know where you need to improve, follow your plan.
Takeaways for Electrical Safety Compliance
Electrical safety compliance is only going to become more important.
Recent years have seen electrical regulations get stricter, incidents increase, and government agencies like OSHA penalize non-compliant facilities at every turn. This trend is not going backward.
If your facility invests the time and money into taking your electrical safety compliance seriously now, you can avoid the fines and penalties that are only going to get larger in the future.
Here’s what you need to remember:
- Electrical safety compliance standards are stricter than ever
- The cost of non-compliance can be measured in human lives
- Custom engineered power systems allow you to start from a place of compliance
- LOTO, arc flash, and outdated equipment present the biggest compliance opportunities
- Regular electrical audits and documentation are the backbones of any compliance plan
Electrical safety isn’t just about avoiding citations. It’s about creating a workplace that keeps your employees safe.
FAQs
What does electrical safety compliance mean?
A facility’s electrical safety compliance program includes anything related to electrical equipment and energy that must comply with OSHA safety standards and NFPA best practices. This can include equipment ratings, employee training, energy assessments, and more.
Why are businesses turning to custom engineered power systems?
Custom engineered power systems allow facilities to design their electrical infrastructure around their operational requirements, not just code requirements. When you use an off-the-shelf solution, you often leave gaps in your compliance plan.
What is OSHA’s most cited electrical violation?
The most commonly cited electrical violation by OSHA inspectors is LOTO procedures. They made up 29% of all electrical violations in FY2023.
How frequently should you perform an electrical safety audit?
Electrical audits should be performed at least annually. If any major changes are made to your equipment, facility, or operational load, another audit should be completed to ensure compliance.
