Internal transfer pricing benchmarks
Use this tool to compare each generator-retailer’s disclosed internal transfer prices to a series of benchmarks to assess whether their pricing practices are fair and competitive.
About ITP benchmarks
What is the internal transfer price?
An internal transfer price (ITP) is the price at which a generator-retailer (a company that both generates and sells electricity) charges its own retail business for the electricity it produces.
About ITP benchmarks
The Electricity Authority develops benchmarks to compare ITPs across different generator-retailers. These benchmarks help identify whether a company's ITPs are within a reasonable range. The goal is to ensure that retailers are not receiving electricity from their own generation business at artificially low prices, which could harm independent retailers and consumers.
How we calculate ITP benchmarks
The Electricity Authority requires generator-retailers to disclose their ITPs, the methodology used to calculate them, and their retail gross margins. We use this data, together with ASX future prices, a locational factor adjustment to approximate basis risk, and a load and price profile, to calculate ITP benchmarks that are comparable to generator-retailer's actual strategies
How to use ITP benchmarks
Use the below tool to view a generator-retailer’s ITPs compared with the Authority’s benchmarks. Select a generator-retailer tab to adjust the benchmarks and compare them to the disclosed internal transfer prices.
Resources
Benchmark descriptions
Benchmark 1: Average hedge prices 4, 16 and 28 months prior to target financial year
Benchmark 2: Average hedge prices 1, 13 and 25 months prior to target financial year
Benchmark 3: Average hedge prices for three quarters, one, five and nine prior to target financial year
Benchmark 4: Average of all hedge prices (overall average)
Benchmark 5: Average hedge prices for 12 quarters to the quarter prior to target financial year
Benchmark 6: Average hedge prices for quarter prior to target financial year
Benchmark 7: Average hedge prices for a month, one quarter prior to target financial year
Benchmark 8: Minimum of monthly hedge prices (overall minimum)
Benchmark 9: Maximum of monthly hedge prices (overall maximum)