As the Coordinating Transmission Network Service Provider for NSW and the ACT, TransGrid is responsible for calculating transmission prices for all NSW transmission businesses using our approved Pricing Methodology set by the Australian Energy Regulator (AER).
AER approved Pricing Methodology
The Transmission Pricing Methodology is used to allocate revenue to be recovered between different customers. As a network service provider, we are committed to minimising the charges passed through to customers and energy consumers while also taking into account an equitable spread of costs.
The current Pricing Methodology came into effect in July 2016. It was developed in consultation with customers, large energy users and consumer representatives. Leading on from this consultation, the pricing methodology includes two key changes:
- Non-locational and common service price components will be set according to maximum demand rather than on an energy basis.
- Locational price component will be set using a modified cost reflective network pricing methodology. This allows network utilisation to be factored into pricing, providing better pricing signals back to consumers.
Below you will find our current pricing methodology (effective 1
July 2016). Our new pricing methodology will be effective as of 1 July 2018. You can view a fact sheet with more information about the new methodology below:
Pricing Methodology (Effective 1 July 2016)
Pricing Fact Sheet
Click here for further detail about the consultation process we undertook whilst developing the current pricing methodology.
TransGrid must submit a new Pricing Methodology for review and approval by the AER as part of the next revenue submission, the draft of which was submitted on 31 January 2017. The approved Pricing Methodology will then apply for the five year duration of the next revenue control period, 2018/19 – 2022/23.
As a network service provider, we are committed to ensuring efficient network charges are passed through to customers and energy consumers. When developing the Pricing Methodology for the 2018-2023 regulatory period TransGrid invited interested parties to take part in our consultation and help inform our approach the next pricing methodology. You can read more about the consultation process on the Pricing Consultation page
TransGrid, as the Co-ordinating Transmission Network Service Provider for NSW and the ACT must determine transmission prices that are to be charged to recover the prescribed transmission revenues of Ausgrid, Directlink, ActewAGL and TransGrid. The Australia Energy Regulator (AER) determines the maximum allowed revenue that transmission businesses may earn.
In accordance with the National Electricity Rules, we will publish prescribed transmission prices for NSW and the ACT annually on 15 May 2016 and on the 15 March in future years in accordance with Rule recent changes. Prices are calculated in accordance with the AER approved Pricing Methodology.
We are also required to publish the inter-regional transmission use of system charges (IR-TUoS) on the 15 March 2016. Future MLEC publications will occur on 15 February in accordance with the abovementioned recent changes to the National Electricity Rules. These charges, which are also known as the modified load export charges (MLEC), are payable for use of the NSW and ACT transmission network by adjacent regions.
In addition to regulated or “prescribed” transmission services, our business also provides negotiated transmission services. The National Electricity Rules define which transmission network services are ‘negotiated services’, for example some connection services are negotiated services. Our AER approved negotiating framework must be used by our business and network users when negotiating charges and terms and conditions for negotiated services.
TransGrid’s Cost Allocation Methodology is a clear
explanation of how costs are allocated and distributed amongst various cost
categories within TransGrid’s financial records, and, in particular, the
distribution of costs associated with the provision of prescribed, negotiated
and non-regulated services.
Charges for 2017/18
Transmission Prices 2017-18
Transmission Prices 2016-17
For the 2015/16 financial year, we have calculated the IR-TUoS (or MLEC) amounts payable to TransGrid by:
|MLEC payable by AEMO-Victoria||22,180,593|
|MLEC payable by Powerlink Queensland||7,751,393|
For the 2016/17 financial year, we have calculated the IR-TUoS (or MLEC) amounts payable to TransGrid by:
|MLEC payable by AEMO-Victoria||13,344,760|
|MLEC payable by Powerlink Queensland||3,556,130|
For the 2017/18 financial year, we have calculated the IR-TUoS (or MLEC) amounts payable to TransGrid by:
|Connection Point||Revenue recovered ($)|
|MLEC payable by AEMO-Victoria||12,570,732.20|
|MLEC payable by Powerlink Queensland||4,957,406.14|
Transmission Prices 2015-16
Transmission Prices 2014-15
Transmission Prices 2013-14
Transmission Prices 2012-13
Transmission Prices 2011-12
Transmission Prices 2010-11
Transmission Prices 2009-10
Transmission Prices 2008-09
Transmission Prices 2007-08
Transmission Prices 2006-07