AEMO’s transmission marginal loss and distribution loss factors
Electricity is lost in the transportation of energy through the high voltage transmission system and through the lower voltage distribution systems. As such, every financial year, AEMO calculates transmission marginal loss factors (MLF) and distribution loss factors (DLF) for each of the five regions; Queensland, New South Wales, Victoria, South Australia and Tasmania.
AEMO has released the final MLFs (PDF 1.9 mB) and DLFs (PDF 697 kB) that will apply from 1 July 2019 to 30 June 2020.
What does that mean for your business?
As part of your Electricity Supply Agreement, energy rates are modified by a combination of the MLF and DLF. These percentages are applied to the energy rate you pay and will be reflected on your Origin invoice under “Energy Charges” as “MLF” and “DLF”.
For the period 2019 to 2020, MLFs have fallen by large margins in many regions that have seen investments in generation or transmission capacity, as seen in Broken Hill over the period. Conversely, some areas experienced more transmission or load, such as Berri in regional SA or northern coastal NSW resulting in an increase in MLFs.
DLFs also have relatively minor revisions for 2019/20. These are typically less than ±1% for most customers.
If you need more information about your bill, email BusinessCustomers@originenergy.com.au.