Last week, the AEMC handed down a final determination that focused on customers and protects them from wearing the cost of electricity losses.
Marginal Loss Factors
Marginal Loss Factors (MLFs) put a price on the losses caused by the electricity that is lost as heat when electricity is transported across poles and wires.
MLFs reflect the effect that a generator’s output has on the total electricity losses in the system, dependent on where they are located. Higher losses are most commonly located in weak parts of the network.
The commission found that using the ‘average loss factor’ (ALF) calculations would average these losses and shift the costs of losses onto both consumers and generators who are located in areas where the losses are lower.
The Commission has changed the rule to give the AEMO more flexibility to how they calculate MLFs.
The AEMC are working to provide more information about the market to investors.
What Else Has Changed?
In October, the AEMC altered the rules to improve the transparency of new generation projects.
Part of our role at Silver Asset Services is to keep up to date with legislation changes in the industry to ensure that our Committees are aware of any changes and ensure their customers within the embedded network are protected. We recommend following Silver Asset Services on social media to stay up to date with future changes to the industry.
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