Pricing methodologies - System strength pricing

Date completed: 
1 December 2022
Date initiated: 
9 December 2022
Effective date: 
31 January 2023


On 21 October 2021, the AEMC made a rule change introducing system strength pricing arrangements. Those arrangements required the AER to amend our pricing methodology guidelines, which we did in August 2022. Following this, transmission businesses were required to amend their pricing methodologies (proposed pricing methodologies) to give effect to the AEMC’s rule change and comply with our pricing methodology guidelines.

Over November and December 2022, the applicable transmission businesses submitted their proposed pricing methodologies to the AER.

On 31 January 2023, the AER published its final decision on these proposed pricing methodologies.