Electrical fire risks in the spotlight

Companies and society in general have a massive reliance on electricity and reliable, continued supply of power. This is why companies need to have a continued focus on preventing losses from potential electrical risks. A systematic and integrated approach that combines technology, compliance, training, and preparedness is always required. By prioritising electrical safety, companies can better safeguard their operations.

In a world where electricity is arguably one of the pillars enabling global business and considered to be at the core of functioning societies and communities around the world, we often take for granted the supply of reliable power – every day, whenever we need it, and at the simple push of a button. Still, electrical risks are, to some extent, less understood among the public.

In the industrial space, electrical risks are better understood since electrical failures can pose significant threats to large corporations. For example, a blackout or brownout can impact employee safety but also operational continuity, financial stability, and reputation. In short, few companies can operate without electricity.

Power outages remain a real threat to businesses, leading to potential business interruption. Often the risks of an abrupt blackout or brownout relating to production may be known, yet preparedness measures may be insufficient.

Minimising electrial accident risks

According to Jussi Lehtonen, Loss Prevention Manager at the If Safety Academy, “There are many issues to look out for when looking at electrical safety and related problems. Often accidents and incidents can occur following a lack of planning and failures in the flow of information between different parties involved. Separate teams are working on the same equipment, e.g. the electrical equipment is owned, operated, and maintained by people who are not communicating with each other. There must be overall responsibility and ongoing communications on equipment that carries electrical fire risks.”

“Other issues can include electrical compatibility, e.g. when combining systems that have been built in different decades. To avoid this risk, the purchasing department needs to truly understand how their new purchases will work with existing equipment.”

Proactive measures are essential to minimise the risk of electrical accidents. This includes knowledge-sharing among colleagues and between stakeholders about any updates, changes, and issues with these systems. For example, having proper documentation on quality- and maintenance-related observations and actions taken is vital.

Compliance goes a long way

To ensure a secure working environment, safeguard assets and personnel. Be sure to utilise certified professionals to conduct regular inspections and maintenance of electrical systems to uncover potential hazards such as outdated wiring or overloaded circuits, catching these issues before a fire occurs.

Although it is well understood, in practice it needs to be reiterated that companies must always comply with regional and international electrical safety standards, such as ISO 45001 or NFPA 70E. Upgrading equipment to meet these standards reduces the likelihood of electrical failures.

Your employees play a critical role in electrical safety.

Comprehensive training programmes allow employees to recognise electrical hazards, take the necessary action, safely handle equipment, as well as respond effectively in emergency situations, significantly reducing the risk of accidents and incidents.

Put your emergency response plans into practice regularly. Conducting regular drills will help ensure rapid and co-ordinated responses to electrical incidents, mitigating potential losses. Having accurate values insured and reviewing policies regularly will protect clients against potential electrical damages and business interruptions.

Smart monitoring systems increase safety and efficiency

With the right smart monitoring systems, companies can quickly assess electrical loads, detect faults, and optimise energy usage. Today, technology provides vital insight into detecting potential issues, not only assisting in risk prevention but also helping to enhance overall efficiency.

In this context, intelligent surveillance systems monitor the quality of the customer’s electricity network, conducting real-time analysis of the electricity network. By monitoring the quality of the electricity network, it is possible to react to any changes that the above-mentioned variables may cause. For many such variable, especially in production plants, customers can create triggers on parameters that activate e.g. an alert message or sirens/alarm when the set limits are exceeded or are not achieved, for example.

With these alerts, clients benefit by having time on their side for a more in-depth examination of what could be causing underperformance. This is of course relevant in cases where the process includes an operating model for fixing recognised deficiencies. The aim in this example is to be prepared to find the root cause in time, before production is interrupted. Smart monitoring systems aim to prevent losses due to equipment breakdown and mitigate fire risks to help prevent business interruption and even loss of life.

Usually, by measuring key variables, smart monitoring systems can help reduce unnecessary maintenance costs and qualitative deviations in production, such as repeated repairs of equipment breakdowns or insidiously increasing energy bills, etc.

Regarding electrical fires and trends in general, it is worth mentioning that electrical fires are less and less frequent. This is due to increased preventive maintenance customers have been doing to avoid interruptions in their production and increased focus on electrical fire prevention. Today, one could argue this is an integral part of a company’s risk management.

If Safety Academy in Finland has data to support this statement, based on the frequency of finding electrical faults during site inspections. According to Jussi Lehtonen, “This requires familiarity with electrical fire risks, especially from company management, as the significance of this context to the economic impacts is often not understood its true extent.” For example, he notes that close calls and small fires are often not recorded, which is why there is little data on how many ‘near misses’ have occurred.

Over 5,000 inspections in Finland

As early as 2008, If Insurance experts began recommending that clients conduct thermal imaging of their switchboards, utilising certified expert partners. Over the years, this advice has been proven to be an effective means of detecting hidden risks of electrical fires in commercial properties.

In 2008, there were, for example, no certified thermal imaging technicians for electrical equipment, and the technology was utilised primarily for research purposes. “At that time, it was recognised that the technology could be applied to electrical equipment, helping to locate the fire risks of electrical switchboards,” Jussi Lehtonen explains, “however, there was little regulation in place, so operators in
the field at the time were quite colourful due to the lack of ground rules.”

“From 2011 onwards, If Insurance took a significant role in the development of this standardised operating model, and following our pilot study in 2013, If established its own Loss Prevention Unit, called If Safety Academy, which has currently carried out more than 5,000 electrical fire risk surveys in accordance with the If standard. This includes, for example, thermal imaging of more than 45,000 electrical distribution boards and statistics on the deficiencies observed in them.”

However, there is a strong emphasis on the safety risks observed in sensory examination and the understanding of potential human factors, as the goal is always to create a safe operating environment and electrical safety culture that is present every day in the work environment.

Spreading the word

In 2023, the If Safety Academy in Finland celebrated its 10th anniversary. Today, the team’s expertise is utilised across a broad range of tasks, such as in the training of rescue authorities, participating in and contributing to numerous studies aimed at developing electrical safety, as well as various other engagements with stakeholders across different
channels.

However, customers – and the long-standing loss prevention co-operation with them – are still at the core of the team’s operations. Utilising a systematic operating model, the causal link behind the interruption of business operations due to electrical fires, i.e. the factors leading to an increased fire risk due to the failure of electrical equipment, is becoming more widely understood and people are better prepared for incidents and accidents than before.

“At present, our database contains more than 5,000 inspections, with observations made surveying more than 45,000 electrical switchboards. Of these observations, as many as 3,783 were identified as severe cases requiring immediate repairs. A further 13,071 demanded immediate attention, while 19,903 were observed to require corrective measures in the next service”, Jussi Lehtonen explains.

He continues, “I cannot help but mention that it is no coincidence that electrical fires, at least in If Finland’s company base, have clearly decreased, and of course the impact is much wider than just for our own customers. This all points to increased awareness on the risks relating to electrical systems and equipment as well as investments made into smart monitoring, which could mean that senior decision-makers and stakeholders have understood that electrical safety and monitoring must be a priority at the highest level.”

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Written by

Kristian Orispää

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