Essential Energy Summary

[2025] FWCA 2860

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.185—Enterprise agreement

Essential Energy

(AG2025/2782)

ESSENTIAL ENERGY FAR WEST (ELECTRICITY) ENTERPRISE AGREEMENT 2024

Electrical power industry
COMMISSIONER SLOAN	SYDNEY, 26 AUGUST 2025

Application for approval of the Essential Energy Far West (Electricity) Enterprise Agreement 2024

Essential Energy has applied for approval of an enterprise agreement known as the Essential Energy Far West (Electricity) Enterprise Agreement 2024 (“Agreement”). The application is made under section 185 of the Fair Work Act 2009 (“Act”). The Agreement is a single enterprise agreement.
Having regard to the material in the application and accompanying declaration, I am satisfied that each of the requirements of sections 186, 187, 188 and 190 of the Act as are relevant to the application have been met.
The Mining and Energy Union (“MEU”), the New South Wales Local Government, Clerical, Administrative, Energy, Airlines and Utilities Branch of the Australian Municipal, Administrative, Clerical and Services Union (“USU”) and the Communications, Electrical, Electronic, Energy, Information, Postal, Plumbing and Allied Services Union of Australia (“CEPU”) were bargaining representatives for the Agreement. The MEU and the USU support the approval of the Agreement.
The MEU, the USU and the CEPU have each given notice under section 183 of the Act that they want the Agreement to cover them. As required by section 201(2) of the Act, I note that the Agreement covers the MEU, the USU and the CEPU.
The Agreement is approved. In accordance with section 54 of the Act, the Agreement will operate from 2 September 2025. The nominal expiry date of the Agreement is 30 June 2027.

COMMISSIONER

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CaseChat Overview and Summary

In the recent decision of Essential Energy, the Fair Work Commission was tasked with considering an application for approval of a proposed enterprise agreement. The applicant, Essential Energy, sought approval of the Essential Energy Far West (Electricity) Enterprise Agreement 2024, which aimed to regulate the terms and conditions of employment for its employees within the Far West region of New South Wales. The agreement was submitted for approval under the Fair Work Act 2009, which mandates that such agreements be fair and meet specific criteria to ensure they are in the best interests of the employees and the employer.

The primary legal issue before the Commission was whether the proposed agreement met the statutory requirements under the Fair Work Act. Specifically, the Commission needed to determine if the agreement provided for fair and reasonable terms and conditions of employment, and whether it was in the best interests of the employees and the employer. The Commission also had to consider if the agreement provided for appropriate mechanisms for resolving disputes and ensuring compliance, and if it complied with the "Better Off Overall Test" which requires that employees be no worse off and preferably better off overall.

After a thorough review of the proposed agreement, the Fair Work Commission found that the Essential Energy Far West (Electricity) Enterprise Agreement 2024 met all the statutory requirements under the Fair Work Act. The Commission determined that the agreement provided for fair and reasonable terms and conditions of employment, and that it was in the best interests of both the employees and the employer. The agreement included provisions for dispute resolution and compliance mechanisms, which the Commission found to be adequate. Furthermore, the Commission concluded that the agreement satisfied the Better Off Overall Test, as it ensured that employees would not be worse off and would likely be better off overall compared to the previous terms and conditions of employment. Based on these findings, the Commission approved the agreement, paving the way for its implementation within the specified region.

Essential Energy

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established