AEMO and Network pass-through costs
Unaccounted For Energy (UFE)
Unaccounted for energy refers to electricity that is consumed but can’t be attributed to a specific home or business. The Australian Energy Market Operator (AEMO) bills electricity retailers for a share of the unaccounted for energy used in a local area, based on the ‘accounted for’ electricity used by their customers in that area, which is passed onto customers.
The UFE charges are calculated based on the load (MWh), State Spot Price ($/MWh) and an allocation by the AEMO to the local network.
This charge is calculated based on your six-month consumption (for January to June and July to December) and reflects AEMO’s UFE charges. It appears on your invoice twice a year.
AEMO ancillary charges
AEMO ancillary charges are costs from the Australian Energy Market Operator (AEMO) to manage the power system safely and securely and manage demand to ensure reliability. These costs are passed through to customers and can change from time to time, depending on the amount of ancillary services required in a particular period.
These can change in January and July each year.
AEMO pool fees
These are charges associated with participation in the National Electricity Market and are published on the AEMO website every financial year. These costs are passed through to customers and can change each July.
Network charges
Network charges are pass through costs associated with distributing electricity to your supply address and maintaining the infrastructure (the ‘poles and wires’). For most large business customers, network charges are separate line items, however a small minority of customers with old metering, will have network charges incorporated into a singular rate with other charges.
Changes to network charges apply to all states and can change each July.
Other regulatory charges
These charges cover certain obligations, including State Government taxes, levies and feed-in tariff schemes.
Peak Demand Reduction Scheme for NSW
The Peak Demand Reduction Scheme applies for NSW sites. The scheme aims to incentivise a reduction in energy consumption during peak periods. Under this scheme Momentum is required to purchase and surrender Peak Reduction Certificates (PRCs). If you have sites in NSW, the cost of doing this will be passed along as an annual charge.
The PDRS cost can change each year. More information about PDRS can be found here.
Loss Factor costs
As electricity flows through the transmission and distribution networks, energy is lost due to electrical resistance and the heating of conductors. The losses are equivalent to approximately 10% of the total electricity transported between power stations and market customers. The associated cost is passed on to customers via retailers. More information about Loss Factors can be found here.
AEMO determines Loss Factors each financial year, so these costs can change each July.