The ‘Connection Point Dispatch (CPD) Price’ was a metric we first used on 2019:
- At that time we began referring to it as a Connection Point Dispatch (CPD) Price, to help avoid confusion with the more internationally used term ‘nodal price’ (which, to different stakeholders, may (or may not) include the effect of losses). This was used:
- But from mid-2025 we have started the process of migrating to the use of the term ‘Local Price’ to adopt the same terminology that is used by the AEMO.
Conceptually, it refers to the price that a (supply-side) DUID must ‘bid under’ in order to be dispatched at the Regional Reference Node (RRN). It reflects both:
(1) the physical price at the RRN and
(2) the Local Price Adjustment, calculated due to the impacts from Bound Mis-Pricing Constraints.
(A) What is the CPD Price?
The CPD Price is derived from data published by the AEMO and is the ‘price for that DUID to beat’ in bidding in order to be dispatched for supply-side units or consumption-side units at the Regional Reference Node (RRN):
1) for supply-side units (e.g. Generators, BESS discharge, Negawatts) it’s the price to be at, or under, in order to be dispatched;
2) for demand-side units (e.g. Scheduled Loads) it’s the price to be at, or over, in order to be dispatched.
The CPD Price is unique to each DUID, and:
1) reflects both the physical dispatching price at the Regional Reference Node (which is different under Intervention);
2) and also an adjustment that is dependent on constraints bound and affecting dispatch of units.
It’s not exactly the ‘nodal’ price for the unit because it’s shown at the RRN (which is where NEMDE effectively assesses all the bids for the region).
Will expand this explanation (if required) into the future..
(B) Where is it used in our products?
Over time, the CPD Price is likely to be used in a growing number of products:
(B1) CPD Price in ez2view
The CPD Price was introduced into the ez2view software in 2019 in order to provide a more direct reference (for generators) to the price they need to beat in order to secure dispatch in the NEM. It’s used in a growing number of widgets, such as:
(a) The ‘Unit Dashboard’ widget
(b) The ‘Constraint Dashboard’ widget … from v9.5 onwards
(c) More in future
(B2) CPD Price in the Generator Statistical Digest
Beginning with the GSD2019 (on the ‘B’ Pages for each DUID) we have been providing a monthly time-weighted average CPD price so that (by comparison with the time-weighted average RRP in the region) the reader can gain a sense of the significance of Intervention and Congestion to that particular unit.
(B3) CPD Price in WattClarity articles
Where articles on WattClarity speak specifically about the CPD price (and we have remembered to tag as such!), you can find them linked here.