Reliably affordable? PIAC submission to the AEMC’s Review of Distribution Reliability Outcomes and Standards – NSW Workstream

This submission is a response to the Australian Energy Market Commission’s (AEMC) draft report, Review of Distribution Reliability Outcomes and Standards – NSW Workstream.  In the submission, PIAC argues that the AEMC should have used the the opportunity of the draft report to fundamentally examine the way in which NSW reliability standards are expressed.  PIAC also argues that the AEMC’s method of determining an overall value of customer reliability (VCR) is flawed and arrives at a value that is too high, and hence presents a weaker case for reducing reliability standards than would be the case with a lower VCR.  Using a VCR that more closely aligns with the value for residential consumers would strengthen the case for greater reductions in reliability standards.  PIAC also submits that the reductions in reliability standards modelled for the draft report are not sufficiently ambitious and larger reductions should be modelled as part of the AEMC’s final report.  Finally, PIAC argues that the AEMC should convene an affordability forum to examine in detail the issue of energy affordability within the National Energy Market.