Review of marginal loss factor calculation processes

The National Electricity Rules (NER) require AEMO to calculate and publish, each year, inter-regional loss factor equations and intra-regional loss factors. AEMO has developed the Forward-looking Transmission Loss Factor (FLLF) methodology (often referred to as the Marginal Loss Factor (MLF) methodology) to set out the process by which these factors are determined. Within the scope permitted by the NER, AEMO can amend the FLLF methodology by following the standard rules consultation procedure described in NER 8.9.2.

AEMO reviews the FLLF methodology on a regular basis, and where change is identified as warranted will commence a review under standard rules consultation procedure.

Information on historical or current reviews can be found at https://www.aemo.com.au/consultations.

Documents

Further information will be published when it is available.

For further information please contact the Systems Commercial team. 

Previous Reviews

In August 2018 AEMO held several information sessions to seek feedback from participants and interested parties on the current MLF calculation process.

Specifically, AEMO asked:

• Whether the current MLF calculations are fit for purpose.
• Potential improvements to MLF calculations that AEMO can make through a market consultation to amend the Forward Looking Loss Factor Methodology.
• Potential improvements to MLF calculations that require changes to the National Electricity Rules.
• Ways AEMO can increase the transparency of the MLF calculation process and improve the ability of participants and intending participants to forecast MLFs.

Documents

The slide pack presented at the sessions is available here:

The high-level notes of the discussions are available here: