Transmission Loss Factors (“TLFs”) are scaling factors applied at a metering point for the purposes of accounting for network and transformer losses and otherwise unaccounted-for energy in the electricity distribution system. If such losses were not properly accounted for, settlement errors would result due to a mismatch between injection and withdrawal quantities. Currently, TLFs are applied on all loads. EMA has received feedback from the industry that TLFs should not be applied to loads that are directly supplied by self-generation.
EMA has assessed that it is reasonable not to apply TLFs on loads that are directly supplied by self-generation, as such loads are not supplied from the transmission system,and hence do not incur transmission losses. Changes will have to be made to the Metering Code and Market Support Services Code and the IT systems of the Market Support Services Licensee and/or the MarketCompany to effect the new treatment of TLFs. EMA will subsequently consult the industry on the proposed modifications to the aforementioned Codes. EMA invites comments and feedback on the proposed treatment for TLFs, i.e. to exclude on-site loads that are supplied by their own generation from the requirement to pay for transmission losses.