The Independent Pricing and Regulatory Tribunal (IPART) has called for feedback on proposed changes to the standards for reliability from electricity providers to reflect the value of that reliability and deliver savings to customers.
Member of the Tribunal, Sandra Gamble said that setting the right standard for reliability was about striking a balance between the costs businesses incur in providing more resilient, reliable networks and the value customers place on a reliable, continuous supply of electricity.
“Historically most customers receive a very reliable supply, but providing this has driven increased network costs,” Ms Gamble said.
“Our draft recommendations require networks to ensure that investments in reliability reflect customers’ willingness to pay and are delivered at least cost,” she said.
“Innovative solutions to reliability such as microgrids and standalone power systems can deliver a reliable network at lower cost.”
Ms Gamble said IPART was also recommending higher payments to customers facing prolonged outages.
“Currently customers can claim $80 for long or repeated outages but few make claims and the amount has remained the same since we recommended it in 2004,” she said.
“The new payments acknowledge that there are times when the networks do not meet their service obligations to all customers.”
She said the proposed new payments ranged from $150 to $750 a year and were dependant on the number and duration of outages customers experienced.
Ms Gamble said the Tribunal’s review also found that growth in new technologies, such as roof-top solar and batteries, had created some challenges for electricity networks.
“Under the draft recommendations, the providers would begin publishing data on the quality of service to customers with these technologies, with a view to informing any future regulatory changes,” she said.
Ms Gamble said IPART would hold a virtual public hearing on 16 November and submissions on its draft report would be accepted until 20 November.
IPART’s 127-page draft report, and information on how to have a say, can be accessed at this PS News link.
