• Stakeholder consultation
  • About AEMO
  • Careers and Education
  • Media Centre
  • Contact us
  • Market Notices
    • Stakeholder consultation
    • About AEMO
    • Careers and Education
    • Media Centre
    • Contact us
    • Market Notices
  • Australian Energy Market Operator

    Australian Energy Market Operator Australian Energy Market Operator
    • Electricity
      • National Electricity Market
        • Data dashboard
        • Data
        • Distributed Energy Resources Program
        • Five Minute Settlement and Global Settlement
        • Initiatives
        • Participant information
        • Cyber Security
        • Network connections
        • Security and reliability
        • Emergency management
        • Settlements and payments
        • Planning and forecasting
        • Strategic partnerships
        • Power of Choice
        • Retail and metering
        • Events and reports
      • Wholesale Electricity Market (WA)
        • Data dashboard
        • Data
        • Compliance and audit
        • Participant information
        • Security and reliability
        • Cyber Security
        • Settlements and prudential monitoring
        • Planning and forecasting
        • Reserve capacity mechanism
        • Dispatch and market notices
        • Procedures
        • Archive Section
      • IT Systems
        • NEM
        • IT change and release management
        • aseXML Standards
    • Gas
      • Gas Bulletin Board
        • Reports
        • Other Information
        • Guides & Support
        • Registration Information
        • Markets Portal
      • Western Australia Gas Bulletin Board
      • National planning and forecasting
        • National Gas Forecasting Report
        • Gas Statement of Opportunities
        • Victorian Gas Planning Report
        • WA Gas Statement of Opportunities
      • Declared Wholesale Gas Market
        • Data dashboard
        • Data
        • Market operations
        • DWGM Participant information
        • Registration Information
        • Victorian gas operations
        • Settlements and payments
        • Policies and procedures
        • Market audit reports
        • Gas market reports and notices
      • Short Term Trading Market
        • Data dashboard
        • Data
        • STTM Participant information
        • Registration Information
        • Market operations
        • Settlements and payments
        • Policies and procedures
        • Market audit reports
        • Gas market reports and notices
      • Pipeline Capacity Trading
        • Guides and information
        • Registration Information
        • Procedures
        • Specification of service points, zones and segments
        • Interest Rate
      • Gas Supply Hubs
        • Data dashboard
        • Data
        • Gas Supply Hubs participant information
        • Market operations
        • Settlements and payments
      • WA Gas Services Information
        • GSI participant information
        • GSI procedures
        • GSI compliance and audit
      • Gas Retail Markets
        • Data
        • Gas Retail Markets participant information
        • Market procedures
        • Market audit reports
      • Gas Day Harmonisation
        • STTM timings during transition
      • Emergency management
        • National role
        • Victorian role
      • IT systems
        • IT change and release management
        • User Guide to MIBB Reports
        • aseXML Standards
    • National Electricity Market
    • Planning and forecasting
    • Value of Customer Reliability
  • Share this page
  • Value of Customer Reliability

  • In this section
    • In this section
      Planning and forecasting
      • Interactive maps and dashboards
      • NEM Electricity Demand Forecasts
      • Forecasting Accuracy Reporting
      • NEM Electricity Statement of Opportunities
      • Reliability Standard Implementation Guidelines (RSIG)
      • Scenarios, Inputs, Assumptions And Methodologies For Planning And Forecasting
      • Integrated System Plan
      • National Transmission Network Development Plan
      • Victorian transmission network service provider role
      • Independent regional planning reports
      • Load forecasting in pre-dispatch and STPASA
      • Solar and wind energy forecasting
      • Transmission Connection Point Forecasting
      • Generation information
      • South Australian Advisory Functions
      • Energy Adequacy Assessment Projection (EAAP)
      • Value of Customer Reliability
      • Demand Side Participation Information Guidelines
      • Power System Frequency Risk Review
      • Planning and network regulation
  • What is the Value of Customer Reliability?

    In dollar terms, the Value of Customer Reliability (VCR) represents a customer's willingness to pay for the reliable supply of electricity. The values produced are used as a proxy, and can be applied for use in revenue regulation, planning, and operational purposes in the National Electricity Market (NEM).

    In network planning, AEMO uses the VCR to assess the economic merits of carrying out additional investment in the electricity network. It is important that the VCR figures accurately reflect the value of reliability across a range of customers.

    VCR Fact Sheet

    The VCR Fact Sheet gives an overview of the VCR's meaning, how it was developed, and the resulting figures and relevance for network planning.

    VCR Fact Sheet
    10 Nov 2015 | 424 KB (.pdf)

    Value of Customer Reliability review

    After a request by the Standing Council of Energy and Resources (SCER) (which from December 2013 became the Council of Australian Government (COAG) Energy Council), AEMO reviewed the Value of Customer Reliability (VCR) during 2013–14.

    The review aimed to improve understanding of the levels of reliability customers expect, and to produce a range of VCR values for residential and business customers across the NEM.

    The VCR review commenced on 11 March 2013 with the publication of the Issues Paper. All papers published as part of the VCR review, including stakeholder submissions received, are below.

    Value of Customer Reliability final report
    28 November 2014
    Value of Customer Reliability final report appendix
    28 November 2014  
    Value of Customer Reliability Updated Statement of Approach
    07 March 2014
    Value of Customer Reliability Statement of Approach
    11 November 2013
    Value of Customer Reliability Directions Paper
    3 June 2013
    Value of Customer Reliability Issues Paper
    11 March 2013 

    VCR application guide

    To accompany the VCR review results, AEMO published the VCR application guide in 2014. The VCR application guide provides stakeholder guidance on the current and potential application of the results of the VCR review. The final report document incorporated feedback following stakeholder consultation on the draft report.

    Application Guide: Final Report
    23 December 2014 | 1.84 MB (.pdf)
    Application Guide: Draft Report
    13 October 2014 | 1.5 MB (.pdf)

    Submissions to VCR application guide

    ActewAGL Energy Supply Association of Australia
    GreenSync Grid Australia
    Major Energy Users Inc. Networks NSW
    United Energy Victorian Electricity DNSPs
      • Electricity
      • Electricity Market
      • Forecast
      • National Electricity Market
      • NEM
    • Electricity
    • Gas
    • Stakeholder consultation
    • About AEMO
    • National Electricity Market
    • Wholesale Electricity Market (WA)
    • IT Systems
    • Declared Wholesale Gas Market
    • Short Term Trading Market
    • Gas Supply Hubs
    • Gas Bulletin Board
    • Western Australia Gas Bulletin Board
    • WA Gas Services Information
    • Gas Retail Markets
    • Emergency management
    • IT systems
    • Industry forums and working groups
    • Consultations
    • Our Vision, Mission, and Values
    • Board and governance
    • Our Executive Leadership Team
    • About the industry
    • AEMO History
    • Glossary of terms
      • Careers and Education
      • Media Centre
      • Contact us
      • © 2019 AEMO
      • Privacy and Legal Notices
      • Site by Adelphi Digital
      • Return to top