AER - Values of Customer Reliability - Statement of methodology - Updated September 2020

On 26 November 2019 we released our final decision on the methodology for the Values of Customer Reliability (VCR) review. The final methodology sets out our approach for developing VCR values for the National Electricity Market and the Northern Territory. The key components of the VCR methodology are the use of survey techniques to estimate VCRs for outages of up to 12 hours duration, and modelling techniques to estimate VCRs for widespread and long duration outages. The final methodology is the result of an extensive consultation process that commenced in October 2018. In that process we engaged widely with governments, energy regulators, customer and industry representatives and the public, as well as expert consultants. 

On 23 March 20 we published a draft model developed with ACIL Allen to estimate the costs of Widespread and Long Duration Outages (WALDO) for stakeholder consultation. In light of feedback from submissions responding to the consultation paper, we have decided to update the VCR methodology and discontinue the WALDO modelling work. We have updated the Statement of methodology to reflect these updates.