The F-factor scheme is a Victorian Government scheme that provides financial incentives to Victorian electricity distribution businesses to minimise the number of fire starts within their networks in high fire danger zones and times.
The AER has a limited role to give effect to the incentive payments or penalties by adjusting the distributors’ allowable revenue each year accordingly in accordance with the F-factor Order. All other aspects of the scheme are set out by the Victorian government including the targets and incentive rates.
The AER received fire start reports from the distributors for the 2023–24 reporting period. These reports have been validated by Energy Safe Victoria (ESV).
Based on ESV’s validation of the reports, the AER has applied the f-factor revenue adjustment formula to determine incentive payments and penalties to Victorian distributors for the 2023–24 period in accordance with clause 9(4) of the F-factor scheme Order 2016. These payments and penalties will take the form of adjustments to the distributors’ regulated revenues for regulatory year 2026–27.
For the 2023–24 reporting period, incentive payments ranged from a penalty of $153,816 for United Energy to a reward of $21,432 for Jemena.
Table 1: F-factor incentive payments/penalties 2016–24 by distributor
| Reporting year | AusNet Services | CitiPower | Jemena | Powercor | United Energy |
| 2016-17 | $1,485,000 | $43,200 | $117,300 | $4,639,200 | $224,400 |
| 2017-18 | $316,200 | $36,300 | $112,800 | $995,100 | $5,100 |
| 2018-19 | $404,100 | $31,500 | $116,400 | $3,745,200 | $62,400 |
| 2019-20 | $303,000 | -$6,600 | $49,500 | $1,548,600 | $105,900 |
| 2020-21 | $1,193,700 | $9,300 | $43,200 | $2,479,800 | $174,900 |
| 2021-22 | $279,600 | $12,000 | $49,800 | $1,187,700 | $182,400 |
| 2022-23 | $320,808 | $9,798 | $31,524 | $1,771,266 | $57,516 |
| 2023-24 | -$26,358 | $330 | $21,432 | -$9,018 | -$153,816 |
| Total | $4,276,050 | $135,828 | $541,956 | $16,357,848 | $658,800 |
The distributors' 2023-24 fire start reports and ESV's validation reports are provided below.