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AER reference

Today we commence our engagement with networks, their customers, and other interested stakeholders on developing an approach for valuing network resilience benefits with the release of our Value of Network Resilience Issues Paper. This engagement process is tangential to our current 2024 VCR review, an important addendum to our guidance for networks proposing resilience investments and in response to a request from the Energy and Climate Change Ministerial Council. This value will estimate the value customers place on network resilience during prolonged outages (greater than 12 hours). This paper discusses the scope of the review, its future application and refinement, and explores suggested methodological approaches. 

Electricity networks face growing challenges from the increasing frequency and severity of extreme weather events. Resilient networks effectively withstand and recover from disruptions including extreme weather events. The value of network resilience will assist electricity networks to better plan resilience investments in those parts of their networks identified as at higher risk of exposure to these hazardous events. We invite stakeholders to contribute their insights and expertise to support us in understanding consumers valuation of a resilient electricity network. 

To access the Issues Paper, please visit Issues Paper – Value of Network Resilience. We encourage all stakeholders with an interest in electricity network resilience to join the conversation. Written submissions should be emailed to vnr2024ataer [dot] gov [dot] au (General enquiries - Value of Network Resilience 2024) by 10 June 2024.

As you may be aware, as part of our engagement on the Value of Network Resilience we are forming a stakeholder reference group comprised of engagement experts and key stakeholders to provide additional insight and guidance throughout the engagement process (and guide the deliberative forum). We will also hold a consumer deliberative forum early June to gain insight from customers with lived experience of the recent prolonged outages and better understand the costs they incurred.

The AER is separately undertaking work to address standard outages (up to 12 hours). Please visit Values of Customer Reliability 2024.