On 14 December 2023 we released the Information Notice to tell our stakeholders about the AER’s thinking and next steps for the 2024 values of customer reliability (VCR) review.
The VCR estimate the value different types of customers place on reliable electricity supply under different conditions and are usually expressed in dollars per kilowatt hour (kWh). The VCR play an important role in ensuring customers pay no more than necessary for safe and reliable energy, helping regulated energy businesses identify the right level of investment to deliver reliable energy services to customers.
The AER conducted a review to determine the values different customers place on having a reliable electricity supply in 2019. After extensive consultation and quality assurance on the VCR methodology, we published our final decision in December 2019. It set out the VCR for unplanned outages of up to 12 hours in duration (i.e., standard outages) for the NEM and the Northern Territory. This is the largest VCR study ever conducted in Australia with over 9 000 residential, small business and industrial energy customers completing our survey. We also undertook extensive consultation and quality assurance on our VCR methodology.
We are required to review the VCR methodology and update the VCR at least once every five years. This means that we need to complete our next VCR review and publish the updated VCR by December 2024.