Addressing Grey Market Work in BC
State of Safety 2025
Building a Safer BC by Addressing Grey Market Work
Duty holders, asset owners, and the public all play a role in making BC safer, whether they’re reinforcing the safety standards outlined in the Safety Standards Act, upholding their responsibilities, or reporting hazards and incidents to us. One of our most important objectives as a provincial regulator is to make sure that this safety system works as a cohesive whole. However, when one part of that system abdicates their responsibilities, takes shortcuts, or chooses not to participate, the system weakens and becomes less effective at keeping British Columbians safe.
If a contractor chooses to perform unlicensed, unpermitted, or uncertified work in BC, it can increase the risk of an incident occurring. We refer to this type of work as the grey market — that is, contractors who choose to ignore, or selectively ignore, the established safety standards and perform regulated work illegally. This kind of work sidesteps safety protocol which creates unnecessary safety risks to the public and to the contractors themselves. Addressing the grey market is one of our key priorities as a safety regulator. By reining in illegal work, we can level the playing field and help build a safer BC.
Permits
In 2025, we focused much of our efforts on permits. Permits are critical to the safety system because they help us understand the scope of work being performed so we can accurately validate whether work is being done safely. If the submitted scope of work on a permit is incorrect or inaccurate, or not submitted at all, the permit loses its effectiveness as a regulatory tool, which can create safety gaps.
Using data analysis, we reviewed records across our systems to identify potential gaps and ran a series of email campaigns to raise awareness about the importance of amending permit scope and value while educating contractors about audit and enforcement actions for non-compliance. We were able to target our outreach to clients who were likely undervaluing their permit scope of work. As a result of this campaign, we saw 1,456 amendments and renewals on permits.
Additional campaigns focused on education and compliance. We reminded clients and businesses when permits are required, encouraged renewal of expired permits, and identified cases in which businesses may have been performing regulated work without the appropriate licensing.
We also ran campaigns to raise awareness about permit requirements for newer technologies, including heat pumps and electric vehicle charger installations. To make the permitting process easier for clients, we introduced new online forms, enabling clients to provide information without making phone calls, or to update the scope of work on an existing permit as the job evolves.
Electrical Grey Market Research
We also made strides towards understanding the size and scope of the grey market, specifically in the electrical technology which includes the most contractors out of all the technologies we regulate.
To size the grey market, we leveraged internal and external data and partnered with Ipsos, who provided a bottom-up size estimate and helped identify potential grey market contractors using a web scan of unlicensed advertising and running it against our Find a Licensed Contractor tool. The research found that approximately 22% of electrical contractors in BC are performing electrical work without a licence.
This research was complemented by internal and external discovery efforts, such as interviews with Safety Officers, out-of-province regulators, and reviewing available data through Statistics Canada. Using the findings of this project, we have already begun reminding uncertified electrical contractors of their responsibilities around advertising regulated work and services in BC.
Incidents Involving Unlicensed Contractors
In September 2024, a contractor was modifying fluorescent light fixtures to convert them to LED fixtures at a major retailer when an electrical fault occurred, causing a partial lighting outage. Later that night, another worker, while troubleshooting the lighting outage in a still-energized electrical panel, caused an arc fault that burnt their face and hands, and damaged the equipment.
Our investigation found that the injured worker was unqualified to perform this type of work and was supervised by another unqualified individual using fraudulent certifications. Three other workers within the store were also injured with minor smoke inhalation due to the incident.
Likewise, in December 2024, an electrical fire started inside the wall above a restaurant entrance after a neon sign was replaced with an LED sign, leaving energized high-voltage conductors unprotected. The fire was contained in the sign area and surrounding ceiling and wall, requiring firefighters to cut exterior wall sections and remove ceiling tiles. No permits were issued for any electrical work by the installation contractor. The installation contractor was not licensed in British Columbia to perform electrical work.
Our efforts in 2025 help reinforce the integrity of BC’s safety system and underscore the collective shared responsibility required to keep it strong. By focusing on permit amendments and increasing our understanding of the scope of BC’s grey market, we aim to strengthen both compliance and public confidence. Our progress in 2025 demonstrates what can be achieved through data-driven oversight and targeted outreach. When duty holders, asset owners, and the public fulfill their roles together, we create a more transparent, accountable, and effective safety system.
Advancing Business Transformation
Our business transformation efforts focus on modernizing the digital systems and tools that support safety oversight across British Columbia. By upgrading our technology and improving how clients and employees interact with our services, we’re building a more accessible, more efficient, data-driven system that strengthens safety outcomes.
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