PIAC responded to the Australian Energy Market Commission’s (AEMC) Transmission Loss Factors draft rule consultation.
PIAC agrees with the AEMC that the proposal – to share inter-regional settlement residues and move from a marginal to an average loss factor methodology – would not address the underlying cause of recent and expected future Marginal Loss Factor (MLF) volatility.
We also reiterate that any change to MLFs, or transmission losses more broadly, must follow and complement the overarching reforms to the generation and transmission frameworks, such as those currently being developed through the AEMC’s COGATI review. In the meantime, PIAC supports the AEMC’s proposal to improve transparency and remove unnecessary prescription from the Rules.
PIAC also reiterates the two alternative models for MLFs raised in our earlier submission to this process.
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