For prescribed electricity entities, maintaining a safety management system (SMS) is a mandatory requirement. This system must include clear details about its safety objectives, the procedures to achieve these objectives, the performance criteria to meet, and the methods to ensure ongoing compliance with these criteria.

As part of the regulatory framework, an annual safety management system performance audit is conducted. This audit serves to confirm several critical aspects:

1. The prescribed entity is effectively implementing the safety management system.
2. The safety management system documentation remains in compliance with relevant legislation.
3. The safety management system is successfully achieving its stated objectives.
4. Adherence to and maintenance of the performance criteria within the safety management system are sustained.
5. The auditing system employed by the prescribed entity for its safety management system is proven to be effective.
6. Any necessary modification compliance audits have been performed.

This annual audit is instrumental in ensuring that safety standards are met, regulations are adhered to, and the safety management system functions as intended for the well-being of all involved.