Consultations

We are proposing improvements to the disclosure of internal transfer pricing – the price used by a generator-retailer to determine the profit allocated between the generation and retailing parts of their business.

We are proposing a Code amendment to mandate that large integrated generator-retailers publish their internal transfer prices and methodology annually. We are also seeking feedback on the merits of a Code amendment for segment gross-profitability reporting for retail electricity businesses.

Internal analysis completed by the Authority found there is limited public disclosure of the methodologies used by the large generator-retailers and we consider improving disclosure may foster public understanding and confidence in these prices.

Update - 20 April 2021

We have amended the proposed Code changes to include a bespoke audit provision. The updated consultation paper is available below.

These provisions can be found from clause 13.262 onwards in Appendix A which contains the proposed Code amendment. The Authority considers the proposed audit provisions will enhance trust and confidence in the proposed reporting requirements, and is seeking stakeholder feedback on them. Please provide any comments on these additional provisions when making a submission (in particular any response on Question 24).
 
R code that illustrates how benchmark internal transfer prices were computed by the Authority can be found here. 
 
The consultation closed at 5pm on Tuesday, 18 May 2021. Submissions have now been published.