Values of customer reliability (VCR)

  • Accepting submissions
Sector: 
Status: 
Date initiated: 
19 October 2018
Effective date: 
31 December 2019
Contact: 
AER General inquiries AERInquiry@aer.gov.au
AER reference: 
PRJ1003080

Overview

The AER is conducting a review to determine the values different customers place on having a reliable electricity supply. 

The values of customer reliability (VCR) plays a pivotal role in network planning and investment and informs the design of market and network price caps and incentives, such as for network reliability.

The last review of VCR was undertaken in 2014 by the Australian Energy Market Operator (AEMO). Our review will update the methodology AEMO employed to determine VCR to take account of changes in the National Electricity Market since 2014.

Consultation Update paper

On 18 April 2019 we released our Consultation Update paper, which informs stakeholders of our progress and thinking to date. The Consultation Update paper provides a summary of the submissions we received in response to our Consultation Paper and public forums. It also sets out our initial positions on existing approaches to measuring VCRs, our proposed methodology, and survey design for estimation of standard outages. We also hope that this provides some useful transparency. Given this is not a formal consultation document we are not requesting formal responses. However, we welcome any views and feedback interested parties wish to provide.

Views and feedback to this paper should be sent to: VCR@aer.gov.au by 24 May 2019.

Background

On 19 October 2018 we released our consultation paper on VCR. Following our public forums in Sydney and Melbourne in December 2018 we extended the submission period on our Consultation Paper until 20 December 2018.

We have also established a Consultative Committee that will provide its views to us on matters relating to VCR.