Incentivising and measuring export services performance

  • Upcoming stakeholder forum
  • Accepting submissions
Sector: 
Segment: 
Status: 
Category: 
Benchmarking
Service target performance incentive scheme
Demand management incentive scheme
Date initiated: 
5 August 2022
Effective date: 
31 December 2022
Contact: 
AER General Inquiries AERInquiry@aer.gov.au
AER reference: 
AER213108

Overview

The Australian Energy Regulator (AER) has begun a consultation process on its approach to incentivising and measuring export service performance. 

This forms part of a reform program to strengthen customer protections and our regulatory oversight of export services provided by distribution networks. These reforms follow the Australian Energy Market Commission’s (AEMC) recent rule change relating to access, pricing and incentive arrangements for distributed energy resources. This joint consultation paper seeks stakeholder views on three interrelated reform workstreams. We seek engagement and feedback on:

  • whether incentive arrangements for export services are fit for purpose, including  whether there is merit in updating the service target performance incentive scheme to cover exports. 
  • the development of performance metrics to include in our first annual DNSP export service performance report. These reports will consider, among other things, the relative performance of each DNSP in providing export services, DNSPs use of static zero export limits and performance relative to export tariff offerings.
  • how to best incorporate export services into our annual benchmarking report. The efficient provision of export services may see DNSPs invest in increases to export hosting capacity. These investment decisions are not currently recognised explicitly as an output in the economic benchmarking framework.

Have your say

We are now seeking submissions from interested stakeholders on consultation paper on incentivising and measuring export service performance by Friday 2 September 2022.