Review of the Values of Customer Reliability – public forum

The AER has commenced a review to determine the value different customers place on a reliable supply of electricity. This is referred to as the Value of Customer Reliability (VCR). VCR values will provide a critical input across a range of electricity reliability and network planning processes.

How consumers value electricity supply depends on their energy needs, from running air conditioners in residential homes to helping to manage a small business to powering large-scale manufacturing processes. The value consumers place on electricity reliability therefore depends on the value they place on these services and because these services differ, so too does the value of reliability. 

VCR will be influenced by many factors, including the type of customer, their access to alternative energy sources, their demographic and the extent to which they have experienced interruptions in the past. VCR will also be influenced by the duration, frequency, timing and location of an interruption. Customers may place little value on avoiding a 10-minute outage that affects only their neighbourhood. But they may be prepared to pay much more on a per unit of energy basis to avoid an outage that prevents them cooling their house for several hours in the summer.

It is important that we hear from a wide range of stakeholders and understand the factors that drive how customers value reliability. This will help ensure there is a reliable supply where and when customers want it most.

Given this, we recognise the importance of stakeholder contributions and invite stakeholders with an interest in VCR to attend one of the upcoming public forums on the VCR review.

Stakeholder forums Sydney and Melbourne

5 December 2018 to 6 December 2018

The AER must develop and publish a national methodology for estimating VCRs on a consistent basis across the National Electricity Market (NEM) and Northern Territory. We will use this methodology to derive and publish VCR estimates by the end of 2019.

Our public forums are an important part of this review. The forums provide an opportunity for different stakeholders to work together in providing input to help us develop a methodology for how electricity consumers value a reliable electricity supply. 

Public forums will be held in Sydney and in Melbourne. If you are interested in attending a public forum, please notify us by emailing vcraer [dot] gov [dot] au (vcr[at]aer[dot]gov[dot]au) before close of business on 30 November 2018. Late registrations will be accepted if space permits.

For any enquiries or questions about the public forum please email vcraer [dot] gov [dot] au (vcr[at]aer[dot]gov[dot]au) 

Forum details