Today the Australian Energy Regulator (AER) released a Consultation Update paper on VCR, which informs stakeholders of our progress and thinking to date. The Consultation Update paper provides a summary of the submissions we received in response to our Consultation Paper and Public Forums. It also sets out our initial positions on existing approaches to measuring VCRs, our proposed methodology, and survey design for estimation of standard outages.
The AER is conducting a review to determine the values different customers place on having a reliable electricity supply.
The values of customer reliability (VCR) plays a pivotal role in network planning and investment and informs the design of market and network price caps and incentives, such as for network reliability.
The last review of VCR was undertaken in 2014 by the Australian Energy Market Operator (AEMO). Our review will update the methodology AEMO employed to determine VCR to take account of changes in the National Electricity Market since 2014.