AER F- factor amount determinations for Victorian electricity distribution network service providers' 2014 fire start outcomes - September 2015

Final decision: f-factor amount determinations for 2014 fire start outcomes in Victoria

Having considered submissions received through public consultation, our final determination regarding 2014 fire start outcomes confirms the position adopted within our draft determination published on 24 June 2015. This fire start outcome of 2014 will apply to 2016 network tariffs.

Under this determination (see table below), all Victorian electricity distributors, except AusNet Services, will receive a penalty because there were more fire starts than the respective benchmark targets. The penalties range from $15 000 for CitiPower to $2 245 000 for United Energy. AusNet Services will receive a $1 870 000 reward as its fire start number was below its benchmark target.

The f-factor is an incentive scheme. Victorian electricity distributors can only retain their rewards for sustained and continuous improvements by mitigating the number of fire starts. Once improvements are made, the benchmark fire start targets will be tightened in future years.

Numbers in brackets represent more fire starts than the benchmark targets, resulting in negative adjustment to the allowable revenue and reduction in network charges.