Values of Customer Reliability adjusted for 2021

The Australian Energy Regulator (AER) has released the updated Values of Customer Reliability (VCR) for 2021.

The VCR outlines the dollar value impact of power outages lasting up to 12 hours for customers in the National Electricity Market and Northern Territory.

To reflect the effects of price inflation, the AER adjusts the VCR annually in line with changes in the Consumer Price Index (CPI).

We have adjusted the 2020 VCR for a CPI increase of 3.01 per cent.

Network businesses, market operators and regulators should adopt the updated VCR in any relevant application from 18 December 2021 to account for the effects of inflation.

Background

The AER has developed a methodology to determine the annual VCR, which includes a mechanism for annual adjustments, consistent with 8.12(b) and 8.12(g) of the National Energy Rules.

The methodology underwent an extensive consultation process that began in October 2018. Annual adjustments aim to reflect inflation, which we base on yearly movements in the September quarter CPI. This methodology is set out in the final decision on methodology.

We will continue to adjust the VCR annually for CPI, and will revisit this approach in the next VCR review due by 31 December 2024.

Sector: 
Issued date: 
17 December 2021
AER reference: 
AC 200/21
Contact: 
AER General Inquiries AERInquiry@aer.gov.au