Solar feed-in tariff benchmark methodology - IPT_sf202404

To provide written and verbal advice to the Tribunal on the following topics: • the impact of solar exports on retailers’ strategies and practices to manage wholesale electricity costs, given differences in approach, retailer size and structure (i.e. stand-alone retailers versus gen-tailers) • the appropriateness of using our existing methodology for calculating solar feed-in tariff benchmark ranges (for both the all-day feed-in tariff and time-of-day feed-in tariffs) and whether it reflects the avoided costs that retailers face when supplying energy from solar exports rather than energy purchased from the National Electricity Market • alternative methodologies to estimate the costs that retailers avoid when supplying energy from solar exports rather than from the NEM, including: • the strengths and weaknesses of the proposed methodologies (relative to existing methodology and other proposed methodologies) • whether the methodology is transparent and reproduceable • whether the methodology is likely to be representative of the strategies and practices adopted by segments of the market (for example, small retailers, large retailers or gen-tailers) • how the approach performs in forecasting actual avoided costs (i.e. when the methodology is tested with historical data). • Provide any other advice as agreed.

5-Apr-2024 to 1-Nov-2024