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Annual Report 2014/2015 Utilities Commission



Annual Report 2014/2015 Utilities Commission

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Tabled paper 1571


Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT






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9 Power System Review The Commissions annual Power System Review (PSR) focuses on the Darwin-Katherine, Alice Springs and Tennant Creek regulated power systems. Continuing from previous years, the 2013-14 PSR focuses on actual system availability (generation and networks) to assess the security and reliability of the system, including voltage, forced outage rates and spinning reserve. The 2013-14 PSR also incorporates reporting on performance against standards of service in accordance with the Electricity Standards of Service Code. Regular and comprehensive public reporting on power system and distribution network performance is an essential feature of the electricity supply industry in all other jurisdictions, including those forming part of the NEM. Transparent and robust reporting on system planning and performance matters also assists in holding electricity businesses accountable for reliability performance outcomes. Consistent with the Territory Governments electricity market reform program, the Commission continues to transition reporting requirements in the Territory to be consistent with the NEM. Licensing In 2014-15, the Commission provided advice on the Territorys regulatory framework and the licensing process to potential generation and retail licence applicants. The Commission approved an application from Rimfire for an electricity retail licence in August 2014. In December 2014, the Commission received applications for electricity retail and standard generation licences from EDL. As at 30 June 2015, the licence applications were approved pending network access agreement finalisation. In May 2014, the Commission received an application from Northern Power for a standard generation licence. The Commission continued discussions with Northern Power during 2013-14 and, as at 30 June 2015, further information was still to be provided by the applicant. Consistent with good regulatory practice, the Commission seeks comments on licence applications from market participants and stakeholders. Technical Audit In 2014-15, the Commission undertook a technical audit to examine the degree to which the system control, generation licence and the network licences were complied with. The audit also considered the level of likely compliance immediately prior to the 12 March 2014 System Black incident that occurred in the Darwin-Katherine power system. The audit noted a number of non-compliant and part-compliant issues for Power and Water and Territory Generation. The audit also noted that both Power and Water and Territory Generation were non-compliant with the licence requirement to maintain an adequate compliance process. The Commission understands that Power and Water and Territory Generation have addressed, or are in the process of addressing, all part-compliant and