Market Review: Completed
On 28 November 2012, the Australian Energy Market Commission (AEMC) published a draft report for public consultation on whether there is merit in a national framework for distribution reliability outcomes. The draft report sets out high level features of a framework which could deliver more efficient and effective reliability outcomes across the National Electricity Market (NEM).
Under this framework, jurisdictions would retain responsibility for determining the level of reliability that should be provided by distribution businesses. However, reliability targets across the NEM would be set, delivered, and reported on under a national framework.
Submissions on the draft report closed on 25 January 2013.
On 8 February 2013, the AEMC received a new request from the SCER to undertake a review to develop national frameworks and methodologies for electricity distribution and transmission reliability across the NEM. The distribution workstream of this new request will be a continuation of the work on distribution reliability undertaken to date. All ongoing information and documentation on distribution reliability can be found here.
On 30 August 2011, the SCER directed the AEMC to undertake a review of distribution reliability outcomes and standards. The review has two separate workstreams, working to separate (but overlapping) timetables:
- a review of the distribution reliability outcomes in NSW; and
- a review of the frameworks across the NEM for expressing, delivering and reporting on distribution reliability outcomes.
The national workstream
Distribution reliability outcomes are currently set separately for each NEM jurisdiction by jurisdictional regulators, relevant government bodies or individual distribution businesses, and different approaches are used between jurisdictions.
The national workstream addresses the SCER's request to consider if there is merit in developing a national framework for expressing, delivering, and reporting on distribution reliability outcomes.
The NSW workstream
The NSW workstream aims to provide advice on the costs and benefits of alternatives for future distribution reliability outcomes in NSW.
On 31 August 2012, the AEMC published its final report on the NSW workstream of the Review of distribution reliability outcomes and standards.
The Brattle Group report
On 2 February 2012, the AEMC published a paper by The Brattle Group on approaches to delivering electricity distribution reliability outcomes across Australia and internationally.
Brattle's paper sets out key findings from its analysis of the alternative approaches to distribution reliability, as well as a comparison of the approaches used in Australia compared to other jurisdictions overseas. In addition, Brattle sets out some best practice recommendations for distribution reliability in Australia.
Brattle's paper has been used to inform both the New South Wales and national workstreams of this review.