Overview
In 2007, the AER published its transmission pricing methodology guidelines.
The guidelines were amended on 17 July 2014 to include a new section (section 2.6). This was following a rule change introducing inter-regional transmission charging arrangements. No other amendments were made.
On 25 August 2022, we published the final amendments to our transmission pricing methodology guidelines to include how to price system strength services in the National Electricity Market (NEM). Based on a rule change by the Australian Energy Market Commission in October last year, we have modified the guidelines to specify:
- the permitted methodologies for determining the system strength unit price, and
- the principles for forecasting system strength revenues.
Background
In accordance with the National Electricity Rules, transmission network service providers are required to submit to the AER a proposed pricing methodology relating to prescribed transmission services which are subject to a transmission determination. The AER is required to assess whether the proposed pricing methodology is consistent with the pricing principles for prescribed transmission services outlined in rule 6A.23 of the NER and the AER’s pricing methodology guidelines.