Analysis of stakeholder feedback is underway as we prepare the final determination on Transmission loss factors, due in early 2020.

Submissions on our draft rule determination closed on 16 January 2020. 

When you transport electricity across a network of poles and wires, some of it is lost as heat. This loss during transmission is calculated by the Australian Energy Market Operator (AEMO) and affects the prices generators receive, depending on where they are located in the network.

Two rule change requests were submitted in November 2018 and February 2019 by Adani Renewables. These requests sought to change the way transmission loss factors are calculated and also the way intra-regional settlement residues are allocated. 

On 14 November 2019 the Commission published a draft rule determination to retain the existing frameworks around transmission loss factors and intra-regional settlement residues. We also drafted rules to provide AEMO with more flexibility in how it calculates transmission losses.

A pre-final rule determination hearing was held on 4 December 2019 where six stakeholders presented their views to the Commission. We also received 26 written submissions to the draft rule determination.

These submissions covered a range of themes, including the importance of ensuring consumers are not negatively affected and the potential impacts of volatility in marginal loss factors.

The following organisations expressed support for the draft rule determination:

  • Australian Competition and Consumer Commission
  • Energy Networks Australia
  • Australian Energy Regulator
  • AEMO
  • Australian Energy Council 
  • Energy Users Association of Australia
  • South Australian Department for Energy and Mining
  • TasNetworks
  • Tilt Renewables
  • Snowy Hydro
  • Origin Energy 
  • AGL
  • Infigen
  • Engie

The following organisations also supported the draft rule determination with additional further changes:

  • EnergyAustralia
  • Enel Green Power
  • Stanwell Corporation
  • Public Interest Advocacy Centre

The following organisations made submissions that did not support the draft rule determination:

  • Clean Energy Investor Group
  • Windlab
  • ESCO Pacific
  • Foresight Group
  • Powering Australian Renewables Fund
  • Innogy
  • Clean Energy Council 
  • QIC

A final rule determination is scheduled to be made in early 2020. 

Media: Kellie Bisset, Media and Content Manager, 0438 490 041 or (02) 8296 7813