Investigation of the Value of Unserved Energy
To ascertain whether the current USE values ($20,000/MWh (with $10,000/MWh and $30,000/MWh being applied for sensitivity analysis) are fit for purpose, a major survey of residential, commercial, agricultural and industrial consumers is being undertaken. These values were published in 2004 and therefore, it was considered timely to investigate the fitness for purpose of the current values. The survey will cover approximately 14,000 consumers.
On 3 September 2008, the Commission issued a request for information (RFI) for an investigation of the value of unserved energy (the Investigation), as it is currently defined and applied under the Rules.
- Request for Information - Investigation of the Value of Unserved Energy
- RFI enquiries and Commission responses
On 30 September 2008, the Commission released a request for proposal for stage 1 in the investigation noting that it would tender separately for stages 2 and 3 with a single RFT.
A report relating to the value of unserved energy, undertaken for VENCorp in Victoria, Australia, was appended to the RFT for general information purposes.
Stage 1
On 12 November 2008 the Commission engaged Concept Economics Pty Ltd and the Centre for Advanced Engineering (CAENZ) to provide consultancy services to the Commission for Stage 1 of the Investigation.
The output of stage 1 of the investigation was a report by Concept Economics and CAENZ.
Interested parties are encouraged to consider the Stage 1 report, and whilst no formal consultation will be undertaken until after Stage 2, they are nonetheless welcome to forward comments.
Stage 2
Tender process
In November, Strata Consulting Limited was engaged as a preferred supplier of services for stages 2 and 3 of the investigation. A key element of stage 2 of the investigation is a survey of electricity consumers.
In January 2010, a request for proposal was released for provision of services relating to the actual survey.
In March 2010, UMR Limited was engaged for the provision of services relating to undertaking the survey.
Surveys
A large cross-section of electricity consumers will be surveyed. A trial survey took place on 29 March 2010.
A mail survey was not seen as appropriate for very large electricity consumers and 40 major users were interviewed.
Rather than having consumers categorised by types (e.g.. industrial), consumers have been categorised by consumption according to the following levels:
- Residential : less then 8000kWh per annum
- Non-residential small : less than 199,999 kWh per annum
- Non-residential medium: 200,000 kWh up to, 999,999 kWh per annum
- Non-residential large: above 1 GWh per annum
There are six variations of the survey for each category. The basic survey forms used are consistent within each category. However, six variations of stated choice questions, where consumers were asked their preference between two scenarios, were tested.
However, the core of the surveys is similar and the variation is in the scenario section where consumers are asked their preference between two scenarios (scenario A and B) for 4 questions.
Following completion of the trial, the surveys were refined and a large scale survey was undertaken during July and August 2010.
The final surveys can be found below:
- Residential
- Non-residential
- Covering letter
- Small
- Medium
- Large
Next Steps
The Authority intends to consult on the Code implications of the VoLL project findings towards the middle of 2012. The Authority is particularly interested in considering an option of a matrix-based approach to estimating VoLL on the basis that this approach may enable a customised VoLL to be determined for a region, or selected portion of a transmission or distribution network. The proposed Code amendment consultation paper will include further details of the methodology and approach used to develop the VoLL figures.