Final report published on Distribution reliability measures

18 September 2014

The AEMC today published the final report on its review of Distribution Reliability Measures. The report presents common definitions for distribution reliability targets and outcomes that could be applied across the National Electricity Market (NEM). The report proposes the use of these common definitions to increase transparency and consistency of distribution reliability measurements and improve stakeholder confidence.

On 30 January 2014 the Australian Energy Market Commission (AEMC) received a request from the COAG Energy Council to develop common definitions for expressing distribution reliability targets across the NEM.  The COAG Energy Council considers this would be a useful tool to facilitate efficient investment, increase transparency and improve regulatory outcomes.

On 26 March 2014 the AEMC received a letter from the COAG Energy Council agreeing to an extension of the project timeline from 31 July 2014, prescribed in the terms of reference, to 5 September 2014.  The additional time will allow for public consultation which will facilitate a wider understanding of the proposed measures amongst different stakeholders.

The Review originated from a recommendation made to the COAG Energy Council by the AEMC in its Review of the national framework for distribution reliability, for which a final report was published on 27 September 2013.

The AEMC has worked with the AER, relevant electricity distribution businesses, jurisdictional regulatory bodies and governments in the development of the common definitions.

On 19 June 2014 the AEMC called for public submissions on its draft report on Distribution Reliability Measures.  Submissions were due on 18 July 2014 and the AEMC received 11 submissions on the draft report.