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From 1 November 2025, under the National Electricity (Victoria) Act 2005, VicGrid took over from AEMO the coordination of transmission use of system charges in Victoria.
VicGrid also handles enquiries and connection applications for the Victorian transmission network, called the Declared Shared Network under the National Electricity Law.
Transmission use of system (TUOS) charge
Transmission Use of System (TUOS) charges cover the costs for the provision of shared transmission network services in Victoria and are calculated in accordance with the National Electricity Rules (NER).
These charges are recovered from the electricity distributors who operate the poles and wires that deliver power to Victorian homes and businesses, and from large directly connected transmission customers.
When transmission charges are passed through to distributors, they are 'repackaged' into network charges, which are then passed onto retailers, who pass them onto end users of electricity in Victoria.
Until 2025, TUOS prices for each financial year were published by AEMO in accordance with its previous obligations under Chapter 6A of the NER. This responsibility now sits with VicGrid, who will continue to publish TUOS prices in line with its new role.
Modified load export charges
Modified load export charges (MLEC) recover the costs associated with the use of Victorian assets considered to support inter-regional flows to neighbouring regions. These charges are calculated in accordance with the NER, and our pricing methodology.
Revenue methodology for Victoria’s Electricity Transmission System
This document establishes how AEMO calculated the amount to be recovered from Victorian electricity TUOS charges for the current regulatory period, from 1 July 2025 to 30 June 2026.
As result of the transition of responsibilities from AEMO to VicGrid under the NEVA, VicGrid is in the process of updating this document ahead of setting TUOS charges for the next regulatory period.
Pricing methodology for prescribed shared transmission services
As a result of the transfer of functions from AEMO to VicGrid under the NEVA, TUOS prices will continue to be determined in accordance with AEMO's pricing methodology, which was approved by the Australian Energy Regulator (AER) on 31 January 2023.
Any reference to AEMO within the documents are to be interpreted as a reference to VicGrid unless the context otherwise requires.
Funding the planning of renewable energy zones
Since its establishment, VicGrid has been responsible for planning the development of renewable energy zones in Victoria through the preparation of the Victorian Transmission Plan (VTP). Pursuant to the NEVA, VicGrid’s cost for performing zone planning functions in the financial years 2024-25 and 2025-26 as determined by the VicGrid CEO have been recovered through TUOS charges set by AEMO.
VicGrid's fees and charges for its zone planning functions were budgeted to be $26.54 million for the financial year 2024-25 and $37.3 million for 2025-26 (equivalent to respectively about $3.20 and $4.64 of an average annual household bill).
Full details of these charges are set out in the published notices available below.
Generator connection application fees
This document explains the roles we perform in relation to Victorian network connection applications, and the charges VicGrid applies to assess these applications, including alterations to existing generating systems.
Page last updated: 29/10/25
