As the Coordinating Transmission Network Service Provider for NSW and the ACT, TransGrid is responsible for calculating transmission prices for all NSW transmission businesses using our approved Pricing Methodology set by the Australian Energy Regulator (AER).
AER approved Pricing Methodology
The Transmission Pricing Methodology is used to allocate revenue to be recovered between different customers. As a network service provider, we are committed to minimising the charges passed through to customers and energy consumers while also taking into account an equitable spread of costs.
The current Pricing Methodology came into effect in July 2018. It was developed in consultation with customers, large energy users and consumer representatives.
There is no change to the price structure or price calculations, compared to the prior pricing methodology.
Below you will find our current pricing methodology (effective 1
The currently approved Pricing Methodology will then apply for the 2018/2019 – 2022/2023 regulatory control period.
As a network service provider, we are committed to ensuring efficient network charges are passed through to customers and energy consumers. When developing the Pricing Methodology for the 2018-2023 regulatory period TransGrid invited interested parties to take part in our consultation. You can read more about the consultation process on the Pricing Consultation page
TransGrid, as the Co-ordinating Transmission Network Service Provider for NSW and the ACT must determine transmission prices that are to be charged to recover the prescribed transmission revenues of Ausgrid, Directlink, ActewAGL and TransGrid. The Australia Energy Regulator (AER) determines the maximum allowed revenue that transmission businesses may earn.
In accordance with the National Electricity Rules, we will publish prescribed transmission prices for NSW and the ACT annually on 15 March in accordance with The Rules. Prices are calculated in accordance with the AER approved Pricing Methodology.
We are also required to publish the inter-regional transmission use of system charges (IR-TUoS) annually on 15 February. These charges, which are also known as the modified load export charges (MLEC), are payable for use of the NSW and ACT transmission network by adjacent regions.
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.
TransGrid’s Cost Allocation Methodology is a clear
explanation of how costs are allocated and distributed amongst various cost
categories within TransGrid’s financial records, and, in particular, the
distribution of costs associated with the provision of prescribed, negotiated
and non-regulated services.
Transmission Charges for 2020/2021
Transmission Prices 2020-21
Current Transmission Charges for 2019/2020
Transmission Prices 2019-20
Previous Transmission Charges
Transmission Prices 2018-19
Transmission Prices 2017-18
Transmission Prices 2016-17
Inter-regional Transmission Use of System Charges
For the 2020/21 financial year, we have calculated the IR-TUoS (or MLEC) amounts payable to TransGrid by:
2020-21 Inter-regional Charge
GST Exclusive ($)
|MLEC payable by AEMO-Victoria||11,043,846.07|
|MLEC payable by Powerlink Queensland||2,353,399.70|
The historical IR-TUOS charges are:
GST Exclusive ($)