Revenue at risk The sum of the s-factors for all parameters () is not to exceed or fall below, respectively, the upper or lower limits of the revenue at risk as specified in clause 2.5(a) or as varied in accordance with clause 2.5(b) and specified in the relevant distribution determination. Equation 6 below places limits on the sum of the raw s factors for all parameters () to achieves this. If the sum of the raw s-factors for all parameters is equal to either the upper or lower limit or within the revenue at risk (that is equal to or between ± 5 per cent) then=. where: is the lower limit of the overall revenue at risk in accordance with clause 2.5 is the upper limit of the overall revenue at risk in accordance with clause 2.5 is the sum of the raw s-factors for all reliability of supply (ROS) parameters, as determined in equation 8. is the sum of the s-factors for all customer service (CS) parameters, as determined in equation 7. The sum of the s-factors for all customer service parameters () is not to exceed or fall below, respectively, the upper or lower limits of the revenue at risk as specified in clause 5.2(a). Equation (7) below places limits on the sum of the raw s-factors for all customer service parameters to achieve this. where: is the limit of the revenue at risk for all customer service (CS) parameters in accordance with clause 5.2(a) is the limit of the revenue at risk for all customer service (CS) parameters in accordance with clause 5.2(a) is the sum of the raw s-factors for customer service (CS) parameters, as determined in equation (9). The service standards s-factor The s-factor for each parameter is calculated by comparing a DNSP’s performance against its parameters and the performance targets and incentive rates included in the DNSP’s distribution determination for a regulatory year during the regulatory control period. The raw s-factor is the sum of the s-factors for each parameter. Equation (6) ensures that the raw s-factor result cannot exceed the percentage of revenue at risk specified in clause 2.5 or the relevant distribution determination.
The sum of the raw s-factors for all reliability of supply parameters () is calculated as follows: is the sum of the raw s-factors for all reliability of supply (ROS) parameters p is a reliability of supply performance parameter is the incentive rate for parameter p calculated in accordance with clause 3.2.2 is the actual performance for parameter p is the target performance for parameter p is the regulatory year t, and t–2 is the regulatory year in which the performance parameter is measured. The s-factor for an individual customer service parameter () is not to exceed or fall below, respectively, the upper or lower percentage limits of the revenue at risk as specified in clause 5.2(b). Equation (9) below places limits on the s-factor for each individual customer service parameters to achieve this. where: is the sum of the s-factors for all customer service (CS) parameters p is a customer service performance parameter is the incentive rate for parameter p calculated in accordance with clause 5.3.2 is the actual performance for parameter p is the target performance for parameter p is the lower limit of the revenue at risk for an individual customer service (ICS) parameter as set out in clause 5.2(b) is the upper limit of the revenue at risk for an individual customer service (ICS) parameter as set out in clause 5.2(b) Equations (8) and (9) provide for a gap between the regulatory year of service performance and the application of the s-factor. Appendix D: Major event days
Glossary This scheme uses the following definitions. annual revenue requirement has the meaning set out in the National Electricity Rules. business day has the meaning set out in the National Electricity Rules. CAIDI (Customer Average Interruption Duration Index) the sum of the duration of each sustained customer interruption (in minutes), divided by the number of sustained customer interruptions (SAIDI divided by SAIFI). CAIDI excludes momentary interruptions (three minutes or less duration). CPI (consumer price index) has the meaning set out in the National Electricity Rules. The CPI used to escalate the value of customer reliability to the start of the relevant regulatory control period should be the same that was used to roll forward the DNSP’s regulatory asset base (using the roll forward model) in the relevant distribution determination. Customer Base in respect of a relevant period, Customer Base - the number of Distribution Customers as at the start of the relevant period; plus - the number of Distribution Customers as at the end of the relevant period, divided by two. distribution consultation procedures has the meaning set out in the National Electricity Rules. DNSP (distribution network service provider) has the meaning set out in the National Electricity Rules. inactive account a connection to the DNSP’s network that is inactive, that is, does not have an active account with a retailer or is otherwise ineligible to take a supply of electricity. incentive rate the rate at which a revenue increment or decrement accrues due to a change in service performance. interruption an interruption is any loss of electricity supply to a customer associated with an outage of any part of the electricity supply network, including generation facilities and transmission networks, of more than 0.5 seconds, including outages affecting a single premises.