Internal transfer pricing 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.