Where to apply loss factors?

[DAVIS Matthew, IEA/EMS/ESM]

Hi all,

 

I’m trying to compare bids to price (RRP, local price) and power (TOTALCLEARED, DISPATCH_UNIT_SCADA, UIGF, INITIALMW).

 

My question is, when do I multiply or divide by loss factors (TLF, DLF)?

I’ve read AEMO’s Treatment of Loss Factors in the NEM. It’s still not entirely clear to me. I suspect that loss factors are applied in a different place between settlement and dispatch.

 

My understanding (maybe incorrect):

• Bid tables show volume and price at the connection point (i.e. pre-loss)
• DISPATCHPRICE RRP is at the RRN. To compare that to bid price, I need to divide by TLF * DLF (i.e. make bigger)
• DISPATCH_LOCAL_PRICE is the price at the connection point. To compare that to bids, I do not adjust any loss factors. To compare local price to RRP, I need to multiply RRP by both loss factors (to reflect to the connection point), or divide the local price by loss factors (to reflect to the RRN)
• For quantities (TOTALCLEARED, INITIALMW, DISPATCH_UNIT_SCADA, UIGF), I am unsure whether this is pre or post loss, RRN or connection point. Does anyone here know? Since prices are adjusted by both loss factors, I expected that means that volumes aren’t, so these power values are at the connection point. However rule 3.6.3.b.3 says that for settlement purposes, MWh are adjusted by DLF. Does that apply to operational power data?

 

 

 

Thanks,

Matthew

 

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[Josh Hurley]

Hi Matthew,

TOTALCLEARED, DISPATCH_UNIT_SCADA, UIGF, INITIALMW are all at the connection point and prior to loss factors being applied. (I manage some solar farms and am certain of this)

Dispatch earnings (settlement) = Actual MWh produced (AEMO ideal is average of the prior TOTALCLEARED and current TOTALCLEARED, this works as a fair estimate to compare generators) * RRP * loss factors. 

DISPATCH_LOCAL_PRICE - not certain, pick a random generator and the RRP and it's loss factors to confirm 

Cheers, 

Josh

On Fri, 27 Mar 2026, 19:06 'DAVIS Matthew, IEA/EMS/ESM' via NEMOSIS-discuss, <nemosis...@googlegroups.com> wrote:

Hi all,

 

I’m trying to compare bids to price (RRP, local price) and power (TOTALCLEARED, DISPATCH_UNIT_SCADA, TOTALCLEARED, DISPATCH_UNIT_SCADA, UIGF, INITIALMWUIGF, INITIALMW).

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[DAVIS Matthew, IEA/EMS/ESM]

Great! Thanks.

 

For the local price, it’s not published directly. Only the local price adjustment is published, and the rows are missing when there’s no adjustment. So I can’t compare the local price to RRP when there’s no constraint, to see how loss factors are applied to local price.

 

Based on the Guide to Mis-pricing, I think the price adjustment is in the same context as RRP. So I’m assuming that I need to multiply by loss factors to get the local price at the connection point.

 

 

 

So is there any situation where you apply TLF and not DLF, or DLF and not TLF?

 

Regards,

Matthew

 

From: Josh Hurley <joshhu...@gmail.com>
Sent: Friday, March 27, 2026 12:19 PM
To: DAVIS Matthew, IEA/EMS/ESM <Matthe...@iea.org>
Cc: nemosis...@googlegroups.com
Subject: Re: Where to apply loss factors?

 

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[Josh Hurley]

Hi Matthew,

I think for most use cases you would multiply by all loss factors, but not 100% certain. For the generators I work with we just have the MLF in play.

Cheers,

Josh

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