Interregional settlement residues for transmission loops draft determination

AGL has made a submission to the Australian Energy Market Commission (AEMC) Interregional settlement residues for transmission loops draft determination consultation.

AGL expressed support for the AEMC’s draft determination on the treatment of interregional settlement residues but notes the decision to socialise negative residues across jurisdictions based on consumer load is likely to cross subsidise consumers in SA at the expense of consumers in NSW.

We also raised concerns around the AEMC’s proposal to review Settlement Residue Auctions (SRAs) in 2025-26. AGL highlighted the use of SRAs as a key interregional hedging instrument and why the returns reflect the associated risk involved.

Read the full submission.