EUAA Submission: Widespread and Long-term Outages (WALDO) - Value of Customer Reliability

EUAA Submission: Widespread and Long-term Outages (WALDO) – Value of Customer Reliability

Emily Wood | June 5, 2020

‘The EUAA has been very supportive of the extensive work undertaken by the AER to obtain robust estimates of the value of customer reliability published in December 2019. We consider that the values obtained will provide a sound basis for a variety of policy applications in network planning, regulation and pricing.

In our submission in the early stages of the VCR review we did not support VCR for high impact low probability events if values were based on a survey approach. We argued that:

  • It is very difficult to get consumers to properly envisage these circumstances, and
  • We were concerned that values will be misleading and lead to an upward bias in the VCR values that are then used to justify over investment in electricity networks and the NEM more generally

We support the AER’s conclusion in its December 2019 report that a macro-economic modelling approach is the preferred methodology for calculating VCR for Widespread and Long Duration Outages (WALDOs). Our conclusions on the approach proposed in the WALDO Consultation Paper are….’

Please download the attached to read full submission.

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