AER seeks comments on the draft amended Service Target Performance Incentive Scheme (STPIS)

The Australian Energy Regulator (AER) today released the draft amended Service Target Performance Incentive Scheme (STPIS) for consultation.

The AER is responsible for designing the service target performance incentive scheme. The primary purpose of the scheme is to encourage distributors to maintain existing levels of reliability and make improvements where customers are willing to pay for that work.

We are also responsible for developing, publishing and maintaining a guideline for a common set of definitions for distribution reliability measures in the National Electricity Market. The use of these common definitions increases transparency and consistency of distribution reliability measurements to improve stakeholder confidence.

After two rounds of consultation on developing the guideline we have achieved consensus in many areas, yet there are issues in contention that warrant further input from stakeholders:

  1. Modifications to the current incentive rates calculation method
  2. Treatment of unmetered load in terms of performance measurement
  3. Feeder classification
  4. Standardising reporting of affected customers
  5. Treatment of “catastrophic days” in defining major event days exclusion (further removal of some types of interruptions from the data set when calculating distribution reliability measures).

We released the draft amended Service Target Performance Incentive Scheme (STPIS) for consultation today as the third round of our consultation process.

The AER will consider stakeholder submissions on these key areas in arriving at its final guideline in June 2018.

Invitation for submissions

Energy consumers and other interested parties are invited to make submissions on this draft amended STPIS by 9 February 2018. Late submissions may not be taken into account.

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Issued date: 
14 December 2017
AER reference: 
AC 175/17