2024-12-18 AER - Final report - 2024 VCR review

On 18 December 2024 we published our final report on the 2024 Values of Customer Reliability (VCR).  VCR seek to reflect the value that different types of customers place on reliable electricity supply and were last updated in 2019. 

The report sets out the methodology, the data collection and computation, and the final values. The updated values will be used as key inputs for energy businesses and the AER in determining the appropriate level of investment in reliability. The VCR cover unplanned outages of up to 12 hours, the most common type of unplanned outage in the electricity system.   

It follows our final determination on the 2024 methodology, published on 30 August. For the 2024 VCR update, we used the same survey-based methodology as in 2019, but we changed one of the data inputs to use more detailed data based on meter readings for individual customers. This will allow the AER to use more detailed and accurate residential consumption data to calculate the VCR, now and into the future.

Throughout the course of this review we engaged with market bodies, governments, network businesses, customer and industry representatives, and customers themselves. We acknowledge the considerable contributions of stakeholders who provided feedback, information, time, and effort to support to the 2024 VCR review.