EUAA Submission: Review Of The Form of the Reliability Standard & Administered Price Cap
Emily Wood | January 18, 2024
‘…In previous submissions on this matter the EUAA[1]:
- Supported the current form of the reliability standard and considered the current form is still the best option in a renewables dominant grid,
- Supported the continued use of the AER VCR values to assess what consumers are prepared to pay for reliability,
- Recommended that the Panel takes account of the impact of jurisdictional schemes designed to achieve reliability to ensure consumers are not paying twice for the same level of reliability,
- Recommended that the Panel considers the impact of the Gas Mandatory Code on the setting of the APC, and
- Supported the conclusions of the Endgame research commissioned by the AEC that the onus is on the Panel to show that consumers exhibit risk aversion, or an increasing marginal value of customer reliability, in terms of $/kWh unserved, for larger USE events.
Our conclusion in this submission is that, while the modelling the Panel had undertaken is useful to inform the debate, its methodological approach, described in the Directions Paper …..’
Please download attachment to read the full submission.
