Territory Stories

Annual Report 2009-2010 Utilities Commission



Annual Report 2009-2010 Utilities Commission

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Tabled paper 1065


Tabled papers for 11th Assembly 2008 - 2012; Tabled papers; ParliamentNT




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Made available by the Legislative Assembly of the Northern Territory under Standing Order 240. Where copyright subsists with a third party it remains with the original owner and permission may be required to reuse the material.




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11 September 2010 CHAPTER 3 Electricity Supply Industry Introduction 3.1 The electricity supply industry in the Northern Territory is regulated by the Electricity Reform Act, Electricity Networks (Third Party Access) Act, Utilities Commission Act and associated legislation. This statutory framework was introduced on 1 April 2000. 3.2 The statutory framework is primarily focused on regulating the activities of electricity industry participants and customers in the Darwin-Katherine, Alice Springs and Tennant Creek power systems referred to as the market systems. Key elements of the statutory framework are: third party access to the Darwin-Katherine, Alice Springs and Tennant Creek electricity networks; staged introduction of retail contestability, with all customers to become contestable from 1 April 2010; and an independent economic regulator, the Utilities Commission, to regulate monopoly electricity services, licence market participants and enforce regulatory standards for market conduct and service performance. 3.3 In the three market systems, PWC is currently the sole electricity retailer and main electricity generator, with almost 91 per cent of generation capacity. Although there are privately owned generators operating in the Darwin-Katherine and Alice Springs systems and exporting electricity into those systems, these suppliers generate electricity under contract for PWC rather than selling directly to an electricity retailer. PWC provides the fuel used for electricity generation and takes all electricity generated. 3.4 PWC is also the network service provider and is responsible for system control. The Darwin-Katherine, Alice Springs and Tennant Creek networks are not interconnected, and are separated by long distances. 3.5 Electricity supply in regional and remote centres of the Territory is mainly managed by the Territory Government and the service provider through a contract for service model. The Commission has limited regulatory functions in regional and remote centres, with the main task being licensing. Roles and functions of the Commission 3.6 The Commission has the following functions in the electricity supply industry: to perform licensing functions, granting licences to firms to undertake electricity generation, electricity networks, system control and retail operations in the Territory;

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