Determining a value of customer reliability

In March 2013, the Australian Energy Market Operator (AEMO) began a review to determine regional-specific values of customer reliability (VCR) for use in revenue regulation, planning and for operational purposes in the National Energy Market (NEM). PIAC provided AEMO with the submission it prepared for the Australian Energy Market Commission’s 2012 review of network reliability standards. PIAC particularly highlighted to AEMO the issue of the relative weighting given to the VCR of residential consumers versus commercial and industrial energy users when arriving at a single value.