This notice informs all National Electricity Market Registered Participants, Intending Participants and interested parties (“Consulted Persons”) that NEMMCO is conducting a consultation on Changes to Forward Looking Loss Factor Methodology to address unusual conditions, pump storage schemes and advice on committed generator projects.
This consultation is being conducted in accordance with the Rules consultation requirements detailed in clause 8.9 of the Rules.
Objectives of the Consultation
In April 2008, NEMMCO published a draft report on marginal loss factor values to be applied in the 2008/09 financial year as required by NER Clause 3.6.1 & 3.6.2.
These MLFs were the first set to be applied to the NEM with the Snowy region removed. Furthermore, they were being applied at a time of severe drought in Australia. Subsequently, two issues arose from these circumstances:
- As one of the principles of the methodology was based on balancing supply and demand by making minimal changes to the historical generation data, abnormal conditions such as the drought could result in inconsistencies in the forecast with which some participants have concerns.
- The drought has also necessitated increased water pump operation at Lower Tumut to the extent that the pump operated almost as much as the generator. This, combined with the removal of the Snowy region has resulted in an unacceptably high loss factor at Lower Tumut.
A separate issue is that NEMMCO intends to establish a Generator Information page on its website to provide details of generation capacity. As the generation input to the MLF calculation is currently sourced from the SOO in accordance with the methodology, an agreed cut off date for sourcing this information from the generation table would need to be established.
NEMMCO is proposing a consultation be commenced to find solutions for these issues. In particular, the need is for solutions that can be readily applied and that have clear criteria for establishing whether a particular case warrants recalculation of its MLF under abnormal conditions.
The Consultation Process
Following is an outline of the consultation process to date. Please note that these dates are proposed dates and may be subject to change by NEMMCO.
Process |
Date |
Closing date for submissions received in response to this Notice of First Stage of Rules Consultation |
Currently, proposed date is Wednesday 3 December 2008 |
Publication of the Draft Determination and Report and invitation to make submissions in response to the Notice of Second Stage of Rules consultation |
Currently, proposed date is Wednesday 21 January 2009 |
Closing date for submissions received in response to the Notice of Second Stage of Rules consultation |
Currently, proposed date is Wednesday 4 February 2009 |
Publication of the Final Determination and Report |
Currently, proposed date is Wednesday 25 February 2009 |
Contact Details
NEMMCO prefers that submission be forward in editable electronic format as they will be published on the NEMMCO website.
Please send all e-mail submissions to Reena Kwong at reena_kwong@nemmco.com.au. Alternatively, you may post submissions to:
Reena Kwong
System Operations Planning and Performance
NEMMCO
PO Box 2516
Mansfield QLD 4122
 108kB |
Notice of First Stage Rules Consultation - Changes to Forward Looking Loss Factor Methodology - 29 Oct 2008 178-0099.pdf |
472kB |
Methodology for Calculating Forward-Looking Transmission Loss Factors: Final Methodology -12 Aug 03 172-0032.pdf |