The benefit of an interregional charge is that the prices consumers face for transmission services will be more reflective of the actual costs incurred in providing those services. The new arrangements will better recognise the benefits transmission delivers across region boundaries. View more
On 28 February 2013 the AEMC published the final determination and final rule in relation to the interregional transmission charging rule change request put forward by the Ministerial Council on Energy.
The new arrangements will better reflect the benefits of transmission in supporting energy flows between regions. They will not however affect the total revenues earned by each transmission business; only how those revenues are recovered from consumers across the National Electricity Market.
Modelling commissioned by the AEMC shows the net payment of an inter-regional charge by transmission businesses was relatively small as a proportion of overall revenues earned by transmission businesses. For the period modelled (2009-2012) the net charge paid or received by a region ranged from approximately 1 per cent to 6 per cent of allowable revenues (on average over the three years).
The average residential consumer’s energy bill is likely to increase or decrease by less than 1 per cent as a result of the introduction of the inter-regional transmission charge.
View less