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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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22 September 2010 Price regulation 3.73 The Commission regulates certain prices in the monopoly sectors of the Territorys electricity supply industry in accordance with relevant industry regulation Acts. Network access charges 3.74 In the third regulatory control period, which commenced on 1 July 2009, the Commission continued the price cap methodology that had been used in the previous regulatory period, in which a weighted average tariff basket is adjusted annually by an externally-determined price cap escalation factor. 3.75 Prior to the start of each financial year, PWC must submit its proposed tariffs and charges for the coming financial year, with a statement detailing how the tariffs and charges have been calculated consistent with the Commissions determination for the regulatory period and other requirements of the Code, to the Commission for approval. 3.76 On 25 May 2009, the Commission approved the reference tariffs and charges for standard network access services to apply during the 2010-11 financial year. The Commission also approved the schedule of Alternative Control Services - Fee-based Services and the pricing methodology for Alternative Control Services - Quoted Services relating to the use of PWCs prescribed electricity networks for the financial year commencing 1 July 2010. 3.77 The Commission considers the approved tariffs and charges to comply with the above requirements and with the relevant principles laid down in the Code. PWC has continued to work towards converging the three regional tariff schedules into a single NT-wide tariff schedule. System Control charges and pricing of ancillary services 3.78 The Commission approves charges imposed by the power system controller and also has authority to determine prices for ancillary services in the electricity supply industry. 3.79 The system control charges that applied during 2009-10 are those approved by the Commission with effect from 1 July 2004, which continue until superseded. 3.80 The Commission has deferred further development of pricing for ancillary services until prospects of generation competition re-emerge. 3.81 The Commission expects that the structure of system control charges and pricing of ancillary services will be affected by the Review of Electricity System Planning and Market Operation Roles and Structures being undertaken by the Commission during 2010 for the Treasurer. System imbalance charges 3.82 The Commission is responsible for overseeing prices paid (or received) by third-party generators when purchasing (or selling) any mismatches between energy generated by such generators and the load attributable to end-use customers supplied by these generators. The power system controller, in consultation with licensed generators, is required to develop arrangements for settlement of any out-of-balance payments between generators, with the arrangements subject to the approval of the Commission.