More Costs On My Electricity Bill?
You may notice some new line items appearing on your electricity bills with one of these being Unaccounted For Energy (UFE). On 1 May 2022, the National Electricity Rules were amended regarding the recovery of UFE costs in the NEM. While this charge is expected to be relatively small in comparison to your total bill, Retailers now have the capacity to recover these costs and are trying to be as transparent as possible in doing so.
UFE is made up of adjustments to the distribution loss factor (DLF), estimation errors from profiling meters and commercial losses. UFE may be positive or negative month to month, increasing or decreasing your total consumption.
Your costs will vary depending on your location because the factors are different by Distribution Area.
UFE is calculated using the following steps:
- Calculate Weekly Average UFE Factors from AEMO’s 5-minute UFE Factors for the NMI’s Distribution Area
- Where UFE Factors are not available, Monthly Average UFE Factors are calculated
- UFE quantity in kWh is calculated by applying the Weekly Average UFE Factors to Weekly Consumption by TOU Period
- The UFE $ is calculated by applying Metered Rate to UFE quantity kWh for each TOU Period
- Total Consumption increases / decreases by UFE quantity kWh
- Market & Environmental Charges are calculated on Total Consumption including UFE (except GreenPower)
If you want more information, you can go to https://aemo.com.au/initiatives/major-programs/nem-five-minute-settlement–program-and-global-settlement/global-settlement or contact us to discuss in more detail.