The AER has completed a review on the Value of Network Resilience (VNR) for outages lasting longer than 12 hours (prolonged outages). The VNR will help inform networks and stakeholders about appropriate investments to enhance network resilience against extreme weather events, considering both the ability to withstand and recover from such events. This review was tangential to our 2024 Value of Customer Reliability (VCR) review, an important addendum to our guidance for networks proposing resilience investments and in response to a request from the Energy and Climate Change Ministerial Council (ECMC). The value of network resilience will estimate the value customers place on network resilience during prolonged outages.
Background
On 1 March 2024, the ECMC asked us to extend our current review of VCR to establish a value of customer resilience associated with long duration outages. Quantifying resilience helps us make informed decisions and aid networks and consumers in determining the appropriate level of investment needed to provide reliable energy services to customers.
Scope of the review
The VNR review determined the values different customers place on having reliable electricity supply for prolonged outages.
In 2019, we developed the VCR methodology for standard outages (up to 12 hours), following extensive consultation and quality assurance. The AER reviewed the 2019 VCR methodology and published its final determination in August 2024. Further details on the 2024 VCR review (up to 12 hours) can be found at Values of Customer Reliability 2024.