The Australian Energy Regulator today issued a report comparing the performance of Victoria’s five electricity Distribution Network Service Providers (DNSPs): CitiPower, Jemena Electricity Networks, Powercor, SP AusNet, and United Energy Distribution.
The report presents the 2009 financial and service quality performance of Victoria’s DNSPs and also provides details of performance trends during the previous ten years.
AER chairman Andrew Reeves said the report aims to provide greater transparency about the performance of the DNSPs by comparing and encouraging improved performance relative to other network businesses.
The report found that apart from SP AusNet the distributors spent less than the allowance on operations and maintenance set by the Essential Services Commission of Victoria (ESCV) in 2005, and three out of the five distributors spent less than the capital allowance. Since sales were generally stronger than forecast the distributors except for SP AusNet achieved profits which were above those forecast by the 2005 determination.
"These results had an impact on the recent AER determination of network charges to apply from 1 January 2011, with those distributors which had out-performed the forecasts receiving smaller allowances to increase prices and for CitiPower reductions in allowable prices," Mr Reeves said.
2009 was characterised by extended heatwaves and extremely high temperatures in late January and early February. The 7 February 2009 black Saturday events seriously impacted the level of supply reliability in Victoria. The heatwaves resulted in higher power usage, and coupled with transmission and distribution network faults and outages, led to a series of load shedding events in order to maintain the integrity of the power system.
Mr Reeves said even after these extreme events are removed from performance measures, the overall trend of supply reliability appears to have been deteriorating since 2005.
"The AER has introduced a stronger service incentive to promote better reliability of supply from 2011, and will continue to monitor and report on DNSP’s performance under the new requirements."
The report will be available on the AER website.
This report is a continuation of a series of distribution service performance reports previously published by the ESCV, after the transfer of economic regulation from the ESCV to the AER in January 2009.
The AER today has also issued an Information paper: statement by Victorian electricity distribution businesses on their preparation for meeting the 2010–11 summer peak demand.
This paper provides information about Victorian electricity distributors’ preparation for meeting the expected peak electricity demand for the 2010-11 summer period.