Regulated Transmission Pricing
Our transmission network
TasNetworks owns and operates the transmission electricity network within the Tasmanian region. The transmission network is responsible for receiving and transmitting high voltage electricity from generators and delivering it to our directly connected transmission customers and the distribution network (which in turn delivers electricity to residential and business customers).
Operating within the National Electricity Market (NEM) via interconnectors (currently Basslink), TasNetworks provides regulated prescribed transmission services and negotiated services within the framework of the National Electricity Rules (NER).
Revenue and pricing
Prescribed transmission services
As the sole Transmission Network Service Provider (TNSP) operating in Tasmania, TasNetworks is required to charge customers directly connected to the transmission network, which includes the distribution network.
Prescribed services are associated with the use of the shared transmission network, and include network services to load customers and connection services to TasNetworks’ distribution network. Prescribed transmission services are subject to revenue regulation under the NER in which TasNetworks receives a revenue allowance, approved by the Australian Energy Regulator (AER), to recover from users of the network known as the Maximum Allowed Revenue (MAR). The MAR determines the revenue of the upcoming five year period, with prices adjusted annually. This revenue allowance forms the basis of our transmission charges (refer to TasNetworks’ 2024-2029 Revenue Reset).
The AER approved our 2024-2029 Transmission Pricing Methodology which is consistent with the framework of the NER and revenue is smoothed over the regulatory control period to reduce fiscal impact on our customers.
Negotiated transmission services
TasNetworks also provides negotiated transmission services. Negotiated transmission services are usually provided to a single or small group of direct-connect customers for substation connection services. These services generally relate to the connection of generation or industrial-load customers and operations and maintenance of third party identified user shared assets and designated network assets. These services are negotiated in accordance with the Negotiating Principles for Negotiated Transmission Services in schedule 5.11 of the NER.
Our prices that apply to transmission services
-
Prescribed Transmission Services
2023-24 Prescribed Transmission Service Charges (PDF)
2024-25 Prescribed Transmission Service Charges (PDF)
TasNetworks is required to publish its prescribed transmission service charges by 15 March each year. Prescribed transmission services are split into four categories with prices developed for:
Service Description Prescribed entry services This grandfathered entry service(1) is only available to generators directly connected to the transmission network before 9 February 2006. Prescribed exit services Services provided to connect the distribution network to the transmission network.
There are grandfathered exit services(1) provided to load customers (major industrials) that were directly connected to the transmission network before 9 February 2006.Prescribed transmission use of system (TUOS) services For customers directly connected to the transmission network and connected network service providers. TUOS services are split into two categories: - TUOS Locational Charge - a locational price that is calculated for each connection.
- TUOS Non-locational Charge - is based on postage stamp pricing.
Prescribed common transmission services These provide equivalent benefits to all users without any differentiation based on their location. This charge recovers the value of asset-related and other common service costs. The common service charge is based on postage stamp pricing.(2)
Systems strength services are classified as prescribed common transmission services(1) A grandfathered connection service is applied to those customers who were connected to the network under previous rules and regulations.
(2) Postage stamp pricing refers to the equal charge irrespective of the distance the power to be transmitted.
-
Modified Load Export Charges (MLEC)
The NER incorporates inter-regional TUOS between TNSPs of inter-connected regions, i.e., Tasmania and Victoria. The modified load export charge is a fee charged between transmission businesses operating in adjacent interconnected regions within the NEM (i.e., Tasmania and Victoria) to recover the costs associated with the use of assets that support inter-regional energy flows.
For the purposes of the Tasmanian region, Tasmania charges Victoria for the use of Tasmania's assets (when Tasmania is exporting). Similarly, Victoria charges Tasmania for use of Victoria's assets (when Tasmania is importing). These results are netted off and affect prices in Tasmania and Victoria.
MLEC pricing is prepared in accordance with the NER. TasNetworks is required to publish the MLEC by 15 February each year.
The MLEC portion that Tasmania is recovering from Victoria is:
Financial Year Revenue to be recovered (excluding GST) 2023-24 $ 4,503,435
2024-25 $ 3,620,603
-
Systems Strength Unit Price (SSUP)
Systems strength is required to maintain power quality and ensure the stable operation of Inverter-Based Resources (IBR), such as wind and solar generation and battery energy storage systems. TasNetworks, as a Systems Strength Service Provider (SSSP) is required to calculate a Systems Strength Unit Price (SSUP).
The SSUP are based on the long run average costs of providing an efficient quantity of system strength to system strength nodes over a 10-year horizon, supplied from a range of sources, and take into account declared minimum fault levels and forecast connections of IBR and Market Network Service Facilities (MNSF).
New connecting customers that are connecting IBR technologies can choose to:
- self-mitigate their system strength impact; or
- pay for their use of system strength resources procured by TasNetworks.
TasNetworks is required to publish its SSUP by the 15 March each year.
