General news

All disclosed internal transfer pricing information now published

  • Retail
  • Prices

In November 2021, new internal transfer price (ITP) disclosure requirements came into effect. This addressed one of the recommendations from the 2019 Electricity Price Review, which recommended that the Authority enhance reporting on retail and generation profitability.

These requirements provide an evidence base to support an appropriate level of confidence in the competitive operation of the electricity market. They also help inform future action that may be required to reduce information asymmetry between generator retailers and other market participants.

Previously, we only published a subset of the ITP information disclosed by generator retailers annually (under clause 13.256 of the Electricity Industry Participation Code 2010). We use this information as well as the following information to develop a series of benchmarks to enable ITPs to be compared:

  • ASX future prices
  • a locational factor adjustment to approximate basis risk
  • a load and price profile adjustment.

Our ITP benchmark tool can be accessed here.

We have now decided to publish all ITP information disclosed by generator retailers previously and going forward (refer to clause 13.258 of the Code). This is to provide greater transparency and to enhance participants’ ability to compare the ITPs of the generator retailers to the series of benchmarks.

All the ITP information disclosed by each generator retailer for the 2021/22 financial year can be found here.

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