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VICTORIAN ELECTRICITY DISTRIBUTION NETWORK SERVICE · PDF file SP AusNet earned a return of 6.9 per cent compared to a forecast of 5.6 per cent. United Energy earned a return of 8.5

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  • VICTORIAN ELECTRICITY DISTRIBUTION

    NETWORK SERVICE PROVIDERS

    ANNUAL PERFORMANCE REPORT 2010

    May 2012

  • © Commonwealth of Australia 2012

    This work is copyright. Apart from any use permitted by the Copyright Act 1968, no part may be reproduced without permission of the Australian Competition and Consumer Commission. Requests and inquiries concerning reproduction and rights should be addressed to the Director Publishing, Australian Competition and Consumer Commission, GPO Box 3131, Canberra ACT 2601.

    Inquiries about the report should be addressed to:

    Australian Energy Regulator GPO Box 520 Melbourne Vic 3001

    Tel: (03) 9290 1444 Fax: (03) 9290 1457 Email: [email protected]

    Amendment record

    Version Date Pages

  • iii

    Supply Areas of Victorian Electricity Distribution Businesses

  • 4

    Contents Contents ........................................................................................................................ 4

    Preface ........................................................................................................................... 6

    The role of the Australian Energy Regulator ....................................................... 7 Purpose of this report ............................................................................................ 8

    1 Summary ........................................................................................................... 10

    1.1 Profitability ................................................................................................ 10 1.2 Reliability and quality of supply ................................................................ 13

    2 Profitability ....................................................................................................... 20

    2.1 Purpose and scope ...................................................................................... 20 2.2 Return on assets ......................................................................................... 21 2.3 DNSP revenue ............................................................................................ 26 2.4 DNSP expenditures .................................................................................... 27

    3 Reliability and quality of supply ..................................................................... 31

    3.1 Reliability of supply ................................................................................... 31 3.2 Victorian DNSPs ........................................................................................ 40 3.3 Supply areas ............................................................................................... 48 3.4 Reliability of supply compared with price review targets ......................... 58 3.5 Quality of supply ........................................................................................ 66

    4 Customer service .............................................................................................. 69

    4.1 Guaranteed service levels—appointments, connections and streetlights .. 69 4.2 Guaranteed service levels — reliability payments ..................................... 72 4.3 Customer complaints ................................................................................. 75 4.4 Call centre performance during wide-scale events .................................... 77

    5 Long term health assessment ........................................................................... 80

    A Source of information and background information .................................... 83

    Source of information ......................................................................................... 83 Accuracy of reporting ......................................................................................... 83 Health card measures .......................................................................................... 84 Characteristics of the DNSPs ............................................................................. 87

    B Financial information tables ............................................................................ 89

    C Performance information tables ................................................................... 102

    D Supply areas (zone substations) reliability information, 2005–9 ............... 134

    CitiPower .......................................................................................................... 134 Jemena .............................................................................................................. 140 Powercor ........................................................................................................... 145 SP AusNet ........................................................................................................ 154 United Energy ................................................................................................... 163

    E Supply area reliability maps .......................................................................... 170

  • 5

    CitiPower .......................................................................................................... 171 Jemena .............................................................................................................. 173 Powercor ........................................................................................................... 175 SP AusNet ........................................................................................................ 178 United Energy ................................................................................................... 181

  • 6

    Preface This report provides an overview of the performance of the Victorian electricity distribution network service providers (DNSPs) during the 2010 calendar year. This is the final performance report which the AER will publish under the ESCV’s Electricity Distribution Price Review 2006–10 Final Decision (EDPR). The next performance report for Victorian DNSPs will be under the national electricity regime.

    Although Melbourne’s highest maximum temperature for 2010 was 43.6 oC (on 11 January) and the highest overnight minimum (measured between 3pm and 9am) was 30.6 oC on 12 January, overall, 2010 was a much milder year than in 2009. 1

    In 2009, the heatwaves contributed to a significant deterioration in performance against supply reliability measures. In 2010 temperatures in general were more moderate, which led to an improvement in service levels. Overall, with the inclusion of the heatwave and related events, DNSPs in 2010 reported that:

    � the total minutes-off-supply the average customer experienced was 170, or 33 per cent less than in 2009

    � the total number of sustained interruption experienced by the average customer was 1.67, or 34 per cent fewer interruptions than in 2009

    � 5.4 per cent of customers experienced greater than 10 hours without supply, which was less than the 7.6 per cent in 2009

    � the number of customer appointments not met on time and streetlights not repaired within the agreed time increased from 2009, whereas connections not made on the agreed date decreased from the previous year

    � the amount of payments made by DNSPs to customers for low supply reliability decreased from approximately $11.28 million in 2009 to $6.92 million

    � the number of customer complaints increased from 1.1 per 1000 customers to 2.3. This is affected by the introduction of AMI (smart meters) which began to be rolled out in significant numbers in 2010.

    However, even after these extreme events are removed from performance measures, the results indicate a continuing deteriorating trend in the overall level of supply reliability over the 2005-2010 period. The AER has introduced a stronger service incentive to promote better reliability of supply from 2011, and will continue to monitor and report on DNSPs performance under the new requirements.

    1 Annual Climate Summary 2010 by the Bureau of Meteorology. Available at www.bom.gov.au/climate/annual_sum/annsum.shtml

  • 7

    The role of the Australian Energy Regulator As part of the transition to national regulation of electricity distribution and retailing, the Australian Energy Regulator (AER) is now responsible for exercising certain powers and functions previously undertaken by the Essential Services Commission of Victoria (ESCV) for the Victorian jurisdiction. The new responsibilities are conferred on the AER by the operation of the National Electricity (Victoria) Act 2005 (NEVA) in accordance with the Trade Practices Act 1974 and the Australian Energy Market Agreement.

    The relevant Victorian distribution network revenue and service level targets were set by the ESCV for the regulatory period (2006–10). The NEVA delegates power to the AER to administer the ESCV’s Electricity Distribution Price Review 2006–10 Final Decision (EDPR) under the Victorian regulatory framework. This expired on 31 December 2010.

    The AER has set the revenue and service levels for the 2011–15 regulatory control period under the National Electricity Rules. Information about the AER’s 2011–15 distribution determination is available from the AER’s website.2

    In addition to the administration of the EDPR, the NEVA confers economic regulato

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