Urgent Code amendment to correct the REAF formula

The Transmission Pricing Methodology (TPM) provides for an adjustment of a transmission customer’s residual charge when a transmission customer experiences a substantial decrease in demand prior to the new TPM coming into effect on 1 April 2023. The formula for calculating this is called the reduction event adjustment factor (REAF) formula.

Errors have been identified in the formula that would result in adjustments that differ from the policy intent.

To correct the formula, we are making an urgent Code amendment (with a limited duration of 9 months) to ensure it is in force in time for the commencement of the new TPM on 1 April this year. We intend to progress a permanent Code amendment in May.