As the Coordinating Transmission Network Service Provider for NSW and the ACT, Transgrid is responsible for calculating transmission prices for all NSW and ACT transmission businesses.

AER approved pricing methodology

Our pricing methodology details the calculation process of transmission prices and charges, and has been approved by the Australian Energy Regulator (AER).

Our direct customers include:

  • four distribution businesses
  • large energy businesses directly connected to the transmission network
  • coal fired and hydro generators. 

The Australian Energy Regulator (AER) also approves the maximum allowed revenue that Transgrid and other NSW and ACT transmission businesses may earn.

Our current pricing methodology came into effect in July 2023 and applies to the 2023/24 – 2027/28 regulatory control period. It was developed in consultation with customers, large energy users and consumer representatives. The price structure and price calculations are consistent with our previous pricing methodology. 

In accordance with the National Electricity Rules, we publish prescribed transmission prices for NSW and the ACT annually on 15 March. 

Transmission charges

Historical transmission pricing is available in the resources section on this page.

 

System Strength Unit Price

The System Strength Unit Price is a key input to calculate the System Strength Charge of a connecting generator in NSW and ACT. Please refer to this page for an explanation of the System Strength Charge framework.

A summary of the methodology for calculating the System Strength Unit Price can be found here.

Cost allocation

Our Cost Allocation Methodology outlines how Transgrid allocates costs. In particular, it explains the distribution of costs associated with providing prescribed, negotiated and non-regulated services.

Inter-regional Transmission Use of System Charges

Inter-regional Transmission Use of System Charges (IR-TUoS), also known as Modified Load Export Charges (MLEC), are payable by adjacent regions for the use of the NSW and ACT transmission network. We are required to publish these charges annually on 15 February.

For the 2024/25 financial year, we have calculated the following IR-TUoS (or MLEC) amounts payable:

Connection Point

2024-25 Inter-regional Charge 

GST Exclusive ($)

MLEC payable by AEMO-Victoria

9,252,698.77

MLEC payable by Powerlink Queensland

6,018,796.83

The historical IR-TUOS charges are:

Financial Year

Inter-regional Charge

GST Exclusive ($)
AEMO-Victoria Powerlink Queensland

2019-20

16,319,338.58

4,889,033.10 

2020-21

11,043,846.07

2,353,399.70

2021-22

12,998,099.09

3,668,082.46

2022-23

13,668,569.09

3,695,612.74

2023-24

4,967,624.17

2,493,045.77

Negotiated transmission services

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.

Resources

Historical transmission charges

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