PIAC responded to the Australian Energy Regulator’s (AER) assessment of Distribution Network Service Providers (DNSPs) Distributed Energy Resources (DER) integration expenditure.
We commend the AER for consulting on DNSPs’ DER expenditure as the current assessment and determination framework is suited to traditional network expenditure rather than DER.
We recommend the effect DER has on resilience be included in assessing the benefits and costs of DER integration. The AER should also incorporate the outcomes of consumer engagement and consumer preferences in assessing DER integration expenditure where the DNSP provides clear evidence this has been sought from consumers who have been furnished with appropriate information and context to properly inform their decisions. These preferences may be regarding trade-offs in price and reliability, between reliability from their grid-supply and reliability from an alternative supply source, or between difference mechanisms for recovering costs such as tariff designs.
Reducing unfair fines and over-policing from alcohol-free zones