Victorian Energy Market report 2018-19

Distributors are responsible for the reliability of your energy supply – they make sure your energy supply is there when you need it. They also ensure that energy is delivered to you, and that it meets the required quality standards. For example, electricity is delivered without large variations in voltage that could damage electrical equipment.

The gas distribution network is more reliable than the electricity system, mainly because the pipelines are underground and therefore protected from the weather and other interference. This analysis therefore only focuses on electricity distribution.

Your electricity distributor maintains the poles and wires connecting your property to the grid. They are required to notify you in advance if they plan to shut off your supply. However, you may experience unplanned outages from time to time. When this happens, you may be eligible for a payment from your distribution network. 

Average number of electricity interruptions have increased

Distributors submit audited reports on reliability, which is measured by: 

• counting the number of times your supply was interrupted without warning for more than a minute 
• calculating how long the unplanned interruptions lasted. 

As shown in figures 3.17 and 3.18, the average number and duration of electricity interruptions has increased across most distributors in 2018–19 compared to the previous year. 

 

 

 

 

 

 

 

 

 

 

Increase in the payments to customers as a result of disrupted electricity supply

We oversee a guaranteed service level scheme that requires distributors to make payments of up to $360 to individual customers when certain service levels are not met.

These guaranteed service level payments by distributors to electricity customers totalled $10.01 million in 2018. 

Table 3.3 outlines the number and type of guaranteed service level payments distributors have made to customers since 2013. This includes delays in connecting supply. 

Table 3.3 Electricity guaranteed service level payments, by type

Reasons for payment	2013	2014	2015	2016	2017	2018
Late appointments with customers	1,207	1,138	49	101	45	58
Delay in connecting supply	590	407	317	1,479	4,982	2,274
Repeated or lengthy power outages  (low reliability of supply)	67,149	92,052	79,991	135,110	46,913	80,159
Faulty streetlights not repaired in time	118	302	211	648	182	190
Total number of payments made	69,064	93,898	80,568	137,338	52,122	82,681
Total payments ($)	$6,193,930	$9,272,677	$8,192,650	$22,281,980	$6,455,490	$10,006,160

_{Distribution results are reported on a calendar year with 2017 data being the most recent audited data available.}
 

What should I do if my electricity supply is disrupted?

If you experience an outage, you should contact your distributor. Their contact information can be found on your energy bill. If you are eligible for a guaranteed service level payment, this will be automatically credited to your account each year. 

You may be entitled to a payment if:

• you experienced lengthy or repeated gas supply interruptions, or lengthy repeated electricity outages
• your distributor made an appointment with you and is late or does not show up, or
• your distributor fails to supply energy to you on an agreed day (for example, you move to a new property and your distributor does not supply energy to your address on the agreed day)

Unaccounted for gas reported by distributors

Unaccounted for gas, or UAFG, refers to the difference between the measured quantity of gas entering the gas distribution system from various supply points and the gas delivered to customers. There are various causes for UAFG, including fugitive emissions, metering errors, heating value, data quality and theft.

In Victoria, UAFG is managed via a benchmark process. Our Gas Distribution System Code sets benchmarks for each Victorian gas distributor – AusNet Services, Australian Gas Networks and Multinet. The code requires gas distributors to use reasonable endeavours to ensure that UAFG is less than their benchmark.

Retailers are required to purchase enough gas to cover customer consumption and actual UAFG. Each year, gas distributors and retailers each reconcile the amount of gas purchased against UAFG benchmarks.

We have collected new data from gas distributors on recent UAFG levels. The latest settled data is shown in the following table and figures. The most complete settled data is up to 2016 for our gas network.
 

Table 3.4 Class B UAFG for DTS networks, settled data and benchmarks, from 2013 to 2016

Distributor	2013–17 benchmark	2013	2014	2015	2016	2018–22 benchmark
AusNet Services	5.4%	4.24%	4.69%	4.77%	5.10%	4.6%
Australian Gas Networks	3.7%	4.12%	3.61%	4.32%	3.52%	4.0%
Multinet	4.1%	5.05%	4.95%	5.99%	5.24%	5.3%

_{AGN Class B benchmarks are separate for Victoria and Albury, both at 4.0% for 2018–22 and both 3.7% for 2013–17.}