The Value of Customer Reliability (VCR) is a numerical parameter of significant potential use in the operation, planning and regulation of electricity systems. VCR represents the dollar value that customers place on the reliable supply of electricity – an indicator of customers’ willingness to pay for not having supply interrupted.
It is not a parameter that can be measured and it is not a parameter that has a single value applicable to all customers across Australia’s National Electricity Market. It is a parameter that must be approximated or estimated and the methods by which this is done will impact on the certainty with which it can be determined. In turn, the certainty with which it can be determined should influence the way in which it is used.