The AER today published our final decision for the Value of Network Resilience (VNR).
We undertook this review for the first time in response to a request from the Energy and Climate Change Ministerial Council received on 1 March.
As part of our ongoing work program, we produce values of customer reliability for standard outages (unplanned localised outages of up to 12 hours in duration).
This decision outlines our approach to determine the values different customers place on having reliable electricity supply for prolonged outages beyond 12 hours in duration.
Our initial value will be applied to the upcoming Victorian distribution networks electricity determinations for 2026-2031. Victorian distribution businesses are expected to use this initial value to inform their proposed resilience investments in their networks as part of their regulatory proposals.
The AER recognises the importance of valuing network resilience, especially given the increasing frequency and severity of extreme weather events due to climate change. By understanding the value customers place on network resilience, we can help electricity networks plan more effectively for resilience investments, ensuring a reliable energy supply during hazardous events.
While this decision relates to an initial VNR, we will continue to work with stakeholders to develop a more robust and enduring approach throughout 2025. Your participation and contributions to that further workstream will be invaluable.