Performance against minimum

service standards (MSS) by

Energex and Ergon Energy for the
2015-16 financial year
This publication has been compiled by Susie Cupitt of Regulation, Governance and Analytics, Department of Energy and Water
Supply.

© State of Queensland, 2015

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Contents
Distributor performance 1
Background 1
Minimum Service Standards 1
Distribution Networks 1
MSS requirements 2
Failure to perform within MSS limits 2

Summary of Energex performance 3

Performance against the MSS limits 3
Performance against the SAIDI limits 3
Performance against the SAIFI limits 3
Excluded interruptions 4
Major event days 5

Summary of Ergon Energy performance 6

Performance against the MSS limits 6
Performance against the SAIDI limits 7
Performance against the SAIFI limits 7
Excluded interruptions 7
Major event days 9
Distributor performance
Background
There are currently two Queensland distribution entities: Energex Limited (Energex) in South
East Queensland and Ergon Energy Corporation Limited (Ergon Energy) in regional
Queensland. Both entities operate distribution networks under Distribution Authorities issued
to them by the Regulator under the Electricity Act 1994 and administered by the
Department of Energy and Water Supply (DEWS).

From 1 July 2014, as part of ongoing reforms to the Queensland electricity sector, the
minimum service standards (MSS) of electricity distributors, and the requirement for them to
report their performances against the MSS, were incorporated into their respective
Distribution Authorities.

Prior to this date, the MSS and reporting requirements were contained within the
Electricity Industry Code, and the reports were published online by the
Queensland Competition Authority (QCA).

Minimum Service Standards

The conditions of the Distribution Authorities held by Energex and Ergon Energy require that
they use their best endeavours to meet MSS in relation to the frequency and duration of
electricity distribution outages. The MSS are put in place to ensure that Queensland
electricity customers receive a minimum prescribed level of supply reliability. If a distributor
does not meet its MSS limits, it must provide reasons for any failure and a proposal to
improve its performance.

The MSS limits for Energex and Ergon Energy differ, with those set for Energex being more
stringent. This reflects the differences in their distribution networks and the environments in
which they operate.

Under the conditions of their Distribution Authorities, each entity is required to report on its
performance against MSS limits within two months of the end of each quarter. Once the June
quarterly report of each entity is received, DEWS can ascertain whether the distributor has
performed within its MSS limits for the financial year.

This report details the performance of Energex and Ergon Energy against the MSS limits set
for the 2015-16 financial year.

Distribution Networks
The MSS reports are not intended to enable performance comparisons between Energex
and Ergon Energy. Due to their very different operating environments and distribution
network characteristics, any such comparison would be inappropriate. The MSS reports can,
however, be used to gauge the year-on-year performance of each distributor.

The Energex distribution network supplies largely urbanised areas of

South East Queensland. Ergon Energy’s network is spread across the remainder of the state
with a significant number of long, isolated feeders and lower customer densities. The
individual prescribed MSS limits for each distribution entity reflect these network differences.

1
MSS requirements
The MSS requirements are set in relation to the frequency and duration of interruptions to the
distribution services provided by Energex and Ergon Energy. An interruption includes any
temporary unavailability of electricity supply to a customer associated with an outage of the
electricity distribution network.

The MSS are average measures of performance across each distribution network
(categorised by feeder type) excluding the impact of certain excluded events such as severe
weather events. To ensure a low probability of exceeding their MSS limits in a particular
year, distributors must aim to achieve a higher level of performance than the MSS limits. The
MSS limits for each financial year are detailed in the Distribution Authority of each distribution
entity.

There are six MSS limits for each distributor. Three MSS limits relate to the average duration
of service interruptions and three to the average frequency of service interruptions. Reliability
performance is expressed using the following measures:

a) System average interruption duration index (SAIDI) is the sum of all customer
interruption durations (measured in minutes) divided by the total number of customers
(averaged over the financial year) for each distributor; and

b) System average interruption frequency index (SAIFI) is the total number of customer
interruptions, divided by the total number of customers (averaged over the financial year)
for each distributor.

SAIDI and SAIFI performance is measured and reported based on the broad feeder
categories of central business district (CBD), urban, short rural and long rural feeders. The
MSS limits differ between feeder types, reflecting the performance that should reasonably be
achieved on each type.

Some interruptions may be excluded by the distributors when reporting performance against
MSS limits. Possible exclusions include interruptions commencing on a major event day,
interruptions of one minute or less (momentary interruptions), interruptions resulting from a
failure of the shared transmission grid, and interruptions caused by the failure of a
customer’s electrical installation. Interruptions resulting from a direction by a police officer or
other authorised person who is exercising powers in relation to public safety are also
excluded. A complete list of excluded interruptions is set out in the Distribution Authority of
each distribution entity.

Failure to perform within MSS limits

If a distributor exceeds the same MSS limit (i.e. SAIDI limit or SAIFI limit) for three financial
years in a row, this is considered a ‘systemic failure’ and represents a contravention of the
conditions of the entity’s distribution authority.

Under the Electricity Act 1994, any such contravention may incur disciplinary action such as
the cancellation or suspension of a distribution authority and/or the imposition of a pecuniary
civil penalty.

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Summary of Energex performance
Performance against the MSS limits
Energex’s SAIDI and SAIFI performance before and after exclusions and its MSS limits for
2015-16 as prescribed in its distribution authority are presented in Tables 1 and 2. Energex’s
SAIDI performance was well within the set limit for all feeder types for 2015-16.

Performance against the SAIDI limits

Table 1 Energex SAIDI performance (minutes)

2012-13* 2013-14 2014-15 2015-16 SAIDI MSS

limits 2015-16

Total before exclusions

CBD feeders 4.58 4.069 3.699 28.278
Urban feeders 403.90 94.944 190.512 85.916
Short rural feeders 1033.09 232.873 263.357 258.085
Total net of exclusions
CBD feeders 1.41 3.560 3.699 4.680 15
Urban feeders 71.92 74.864 90.813 76.670 106
Short rural feeders 156.94 173.392 178.592 180.890 218

Performance against the SAIFI limits

Table 2 Energex SAIFI performance (number of interruptions)

2012-13* 2013-14 2014-15 2015-16 SAIFI MSS

limits 2015-16

Total before exclusions

CBD feeders 0.01 0.184 0.158 0.131
Urban feeders 1.19 0.916 0.957 0.793
Short rural feeders 2.31 1.817 1.861 1.760
Total net of exclusions
CBD feeders 0.01 0.058 0.158 0.032 0.150
Urban feeders 0.79 0.804 0.786 0.740 1.260
Short rural feeders 1.53 1.556 1.546 1.562 2.460
* previously reported by the QCA

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Excluded interruptions
Table 3 details the interruptions that Energex has excluded in determining performance
against its SAIDI and SAIFI limits during 2015-16.

Table 3 Energex exclusions from MSS reporting for 2015-16

Exclusions from SAIDI Exclusions from SAIFI

(minutes) (interruptions)

Interruption of a duration of one minute or less

None in 2015-16

Interruption resulting from load shedding due to a shortfall in generation

None in 2015-16

Interruption resulting from a direction by AEMO, a system operator or any other

body exercising a similar function under the Electricity Act, National Electricity
Rules or National Electricity Law

None in 2015-16

Interruption resulting from automatic shedding of load under the control of under-
frequency relays following the occurrence of a power system under-frequency
condition described in the power system security and reliability standards

None in 2015-16

Interruption resulting from failure of the shared transmission grid

SAIDI SAIFI

CBD feeder 0.000 0.000

Urban feeder 0.000 0.000

Short rural feeder 0.001 0.000

Interruption from direction by police officer or other authorised person in relation to

public safety

SAIDI SAIFI

CBD feeder 23.598 0.100

Urban feeder 0.000 0.000

Short rural feeder 0.000 0.000

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 Interruption to the supply of electricity on a distribution entity’s supply network
which commences on a major event day

SAIDI SAIFI

CBD feeder 0.000 0.000

Urban feeder 9.199 0.053

Short rural feeder 77.123 0.198

Interruption caused by customer electrical installations

SAIDI SAIFI

CBD feeder 0.000 0.000

Urban feeder 0.047 0.000

Short rural feeder 0.066 0.000

Total exclusions

SAIDI SAIFI

CBD feeder 23.598 0.100

Urban feeder 9.246 0.054

Short rural feeder 77.195 0.198

Major event days

A major event day is one where the daily SAIDI value exceeds a certain threshold, which is
based on the distributor’s historical reliability performance. Major event days are often
associated with severe weather events that cause significant, widespread and prolonged
customer supply interruptions. Major event days are excluded when assessing the
performance of distributors against MSS limits.

Energex reported four major event days during 2015-16:

a) 29 November 2015, due to storms impacting the Energex network;

b) 10 December 2015, due to storms impacting the Energex network;
c) 4 June 2016, due to storms impacting the Energex network; and
d) 24 June 2016, due to storms impacting the Energex network.

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Summary of Ergon Energy performance
Performance against the MSS limits
Ergon Energy’s SAIDI and SAIFI performance before and after exclusions and its MSS limits
for 2015-16 as prescribed in its distribution authority are presented in Tables 4 and 5.

Ergon Energy’s SAIDI performance was within the set limit for its urban and short rural
feeders for 2015-16. In terms of SAIFI, whilst slightly higher than 2014-15 for urban and long
rural feeders, it was within the set limit across all feeders for 2015-16.

Ergon Energy’s reports that the reliability performance for the July – September 2015 quarter
was favourable to the cumulative seasonally adjusted Minimum Service Standards (MSS) for
5 of the 6 performance measures. It reports that, during this period, higher than forecast
planned interruptions occurred to allow remediation of defects on the high voltage distribution
network. As a result, the urban category SAIDI performance is marginally exceeding the
cumulative seasonally adjusted MSS at the end of the September quarter.

By comparison to the equivalent period in 2014-15, Ergon Energy’s advises its overall
network SAIDI and SAIFI this year has underperformed by 6.7% and 2.8% respectively.
Unplanned SAIDI improved by 0.6% and planned SAIDI declined by 21.6%, while unplanned
SAIFI declined by 4.0% and planned SAIFI improved by 1.5% when compared to 2014. The
financial year end performance outcomes against the MSS limits for 2015-16 remain heavily
dependent on the severity of the upcoming storm season and its impact on our network.

Ergon Energy reports its capital investment program for reliability improvement is
considerably less than recent years. The reliability improvement capital investment for
2015-16 relates to the progression and finalisation of projects that commenced in the
previous year, including a number of key reliability improvement plan initiatives and the
progression of the Worst Performing Feeder Improvement Program, which is an obligation
within its Distribution Authority.

Beyond the capital investments, Ergon Energy advises that it remains committed to the
continual improvement of operational practices to achieve optimal reliability performance
outcomes and operating efficiencies using our existing network infrastructure. However, it
has advised that managing the annual variability in reliability of supply performance across
the rural networks is a significant challenge. The rural networks are defined by
geographically dispersed assets, and an extensively radial distribution network with a high
exposure to the influences of severe weather events. The variability of weather causes
significant reliability performance variation. Ergon Energy advises that it continues to use its
best endeavours to maintain and operate the distribution network to manage this annual
variability and with an aim of consistently achieving MSS.

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Performance against the SAIDI limits
Table 4 Ergon Energy SAIDI performance (minutes)

2012-13* 2013-14 2014-15 2015-16 SAIDI MSS

limits 2015-16

Total before exclusions

Urban feeders 274.85 165.62 836.4232 145.3321
Short rural feeders 697.07 440.11 1042.8636 397.0792
Long rural feeders 1566.54 850.86 1590.7802 1040.4344
Total net of exclusions
Urban feeders 135.12 118.49 133.6567 127.7016 149
Short rural feeders 341.44 291.91 359.0826 349.5913 424
Long rural feeders 951.53 798.42 1052.7546 954.7147 964

Performance against the SAIFI limits

Table 5 Ergon Energy SAIFI performance (number of interruptions)

2012-13* 2013-14 2014-15 2015-16 SAIFI MSS

limits 2015-16

Total before exclusions

Urban feeders 1.78 1.714 1.8846 1.3957
Short rural feeders 3.63 3.169 3.8963 3.1983
Long rural feeders 7.16 6.476 7.3054 7.1775
Total net of exclusions
Urban feeders 1.49 1.394 1.2686 1.2723 1.98
Short rural feeders 2.98 2.767 3.1501 3.0234 3.95
Long rural feeders 6.25 6.118 6.7643 6.7663 7.40
* previously reported by the QCA

Excluded interruptions
Table 6 details the interruptions that Ergon Energy has excluded in determining performance
against its SAIDI and SAIFI limits during 2015-16. Compared to the June quarter in 2015,
Ergon Energy's overall network SAIDI improved by 13.8% and overall network SAIFI
declined by 15.5%. Contributing to this, the unplanned SAIDI and SAIFI improved by 48.3%
and 28.9% respectively, and the planned SAIDI and SAIFI declined by 8.9% and 30.5%
respectively compared to the equivalent quarter last year.

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Table 6 Ergon Energy exclusions from MSS reporting for 2015-16

Exclusions from SAIDI Exclusions from SAIFI

(minutes) (interruptions)

Interruption of a duration of one minute or less

None in 2015-16

Interruption resulting from load shedding due to a shortfall in generation

None in 2015-16

Interruption resulting from a direction by AEMO, a system operator or any other

body exercising a similar function under the Electricity Act, National Electricity
Rules or National Electricity Law

None in 2015-16

Interruption resulting from automatic shedding of load under the control of

under-frequency relays following the occurrence of a power system under-
frequency condition described in the power system security and reliability
standards

SAIDI SAIFI

Urban feeder 0.5753 0.0263

Short rural feeder 0.2188 0.0050

Long rural feeder 0.8232 0.0245

Interruption resulting from failure of the shared transmission grid

SAIDI SAIFI

Urban feeder 15.0662 0.0118

Short rural feeder 0.1731 0.0277

Long rural feeder 0.167 0.0096

Interruption from direction by police officer or other authorised person in relation to

public safety

SAIDI SAIFI

Urban feeder 0.0362 0.0004

Short rural feeder 0.2713 0.0035

Long rural feeder 0.5061 0.0038

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 Interruption to the supply of electricity on a distribution entity’s supply network
which commences on a major event day

SAIDI SAIFI

Urban feeder 16.928 0.0847

Short rural feeder 46.7658 0.1384

Long rural feeder 83.8269 0.3730

Interruption caused by customer electrical installations

SAIDI SAIFI

Urban feeder 0.0396 0.0002

Short rural feeder 0.0589 0.0002

Long rural feeder 0.3965 0.0003

Total exclusions

SAIDI SAIFI

Urban feeder 17.6305 0.1234

Short rural feeder 47.4878 0.1749

Long rural feeder 85.7197 0.4112

Major event days

Ergon Energy reported the following major event days during 2015-16:

a) 28 November 2015 - Severe thunderstorms with lightning and strong winds affecting
parts of the Wide Bay region, with Yarraman area principally affected.
b) 23 December 2015 - Severe thunderstorms with hail, lightning, and strong winds
affecting parts of Queensland’s South West region, with Dalby, Toowoomba and
Millmerran areas principally affected.
c) 29 January 2016 - Severe thunderstorms with lightning and strong winds affecting
parts of the Wide Bay region, with Hervey Bay, Maryborough, Kingaroy and
Yarraman principally affected.

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