Overview

Decision
Update

Update - Victoria F-factor scheme results for the 2016-17 period

As required under the F-factor Scheme, distributors have provided the AER with their Ignition Risk Units (IRU) results - measuring occasions when fires result from incidents occurring in their distribution networks - for the 2016–17 reporting period. Following validation by Energy Safe Victoria (ESV), the AER has determined incentive payments for these networks (in the form of adjustments to their 2019 regulated revenue amounts) under clause 9(4) of the f-factor Scheme Order 2016.

View distributors’ fire start reports and ESV’s validation reports.

All distributors achieved better than their respective benchmark performance targets.

Table 1: f-factor revenue adjustment amounts for the fire start results of 2016–17
Distributor Benchmark IRU Targets IRU for 2016-17, as determined by ESV Revenue adjustment ($), incentive rate $15,000 per IRU Approximate cost impact per customer (a)
CitiPower 3.4 0.52 43,200 $0.13
Powercor 468 158.72 4,639,200 $5.96
Jamena 9.7 1.88 117,300 $0.36
AusNet Services 247.7 148.70 1,485,000 $2.14
United Energy 22.3 7.34 224,400 $0.34

Note: (a) Cost impact is calculated via dividing revenue by customer numbers, which is based on 2016 annual RIN.

Update - Victoria F-factor scheme results for the 2017–18 period

As required under the f-factor scheme, electricity distributors have provided the AER with their Ignition Risk Units (IRU) results for the 2017–18 reporting period. IRUs are used to measure the occasions when fires result from incidents occurring in the distributors’ networks. Following validation by ESV of the IRU results, the AER has determined incentive payments for these distributors under clause 9(4) of the f-factor scheme Order 2016. These payments are in the form of adjustments to the distributors’ regulated revenue amounts for the regulatory year 2020.

The IRU targets, IRU results for 2017–18, revenue adjustment per distributor, and cost impact per customer are shown in Table 2.

Table 2: f-factor revenue adjustment amounts for the fire start results of 2017–18
Distributor Benchmark IRU targets IRU for 2017-18 as determined by ESV Revenue adjustment (a) Estimated cost impact per customer (b)
CitiPower 3.4 0.98 $36,300 $0.11
Powercor 468.0 401.66 $995,100 $1.25
Jemena 9.7 2.18 $112,800 $0.34
AusNet Services 247.7 226.62 $316,200 $0.45
United Energy 22.3 21.96 $5,100 $0.01

Note:
(a) based on incentive rate of $15,000 per IRU
(b) calculated by dividing revenue by customer numbers (based on 2017 annual regulatory information notice (RIN) responses).

View the distributors' 2017–18 fire start reports and ESV's validation reports.

Update - Victoria F-factor scheme results for the 2018–19 period

As required under the f-factor scheme, electricity distributors have provided the AER with their Ignition Risk Units (IRU) results for the 2018–19 reporting period. IRUs are used to measure the occasions when fires result from incidents occurring in the distributors’ networks. Following validation by ESV of the IRU results, the AER has determined incentive payments for these distributors under clause 9(4) of the f-factor scheme Order 2016. These payments are in the form of adjustments to the distributors’ regulated revenue amounts for the regulatory year 2021–22.

The IRU targets, IRU results for 2018–19, revenue adjustment per distributor, and cost impact per customer are shown in Table 3.

Table 3: f-factor revenue adjustment amounts for the fire start results of 2018–19
Distributor Benchmark IRU targets IRU for 2018–19 as determined by ESV Revenue adjustment (a) Estimated cost impact per customer (b)
CitiPower 3.4 1.30 $31,500 $0.09
Powercor 468.0 218.32 $3,745,200 $4.52
Jemena 9.7 1.94 $116,400 $0.33
AusNet Services 247.7 220.76 $404,100 $0.55
United Energy 22.3 18.14 $62,400 $0.09

Notes:

(a) based on incentive rate of $15,000 per IRU
(b) calculated by dividing the revenue adjustment by average distribution customer numbers (based on 2018 annual regulatory information notice (RIN) responses).

View the distributors' 2018-19 fire-start reports and ESV's validation reports.