Territory Stories

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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17 Chapter 4: Electricity Supply Industry The electricity supply industry in the 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. 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 (this function was transferred to the AER on 1 July 2015); staged introduction of retail contestability, with all customers becoming contestable from 1 April 2010; and an independent economic regulator, the Commission, to regulate monopoly electricity services, licence market participants and enforce regulatory standards for market conduct and service performance. The structural separation of Power and Water into three separate entities took effect on 1 July 2014, with Power and Water continuing to manage the electricity network and water and sewerage services, and the transfer of the generation and retail licences and functions to Territory Generation and Jacana Energy, respectively. Power and Water continues to retain some limited retail and generation functions primarily related to its remote operations. As at 30 June 2015, there were five electricity retailers licensed in the Territory. The retailers were Power and Water Retail2, Jacana Energy3, QEnergy Limited (QEnergy), ERM Power Retail Pty Ltd (ERM) and Rimfire. In November 2014, applications for an electricity retail licence and a generation licence were received from EDL. As at 30 June 2015, the Commission had approved the retail and generation licences pending network access agreement finalisation. In the three market systems, Territory Generation is the main electricity generator. Most of the electricity generation functions previously held under Power and Waters generation licence before structural separation transferred to Territory Generation. Power and Water continues to operate and own generating plants, primarily in indigenous communities under the Indigenous Essential Services (IES) program, a number of minor commercial power stations, and the Berrimah Power Station in Darwin (final set decommissioned in 2013-14). As at 30 June 2015, an application from Northern Power for a generation licence received in May 2014 was pending further information to be provided by the applicant. 2 Operations in Indigenous communities under the Indigenous Essential Services (IES) program and those parts of the Territory not covered by Jacana Energy. 3 Operations in Darwin, Katherine, Tennant Creek, Alice Springs, Daly Waters, Borroloola, Timber Creek, Elliott, Newcastle Waters, Yulara, Ti Tree and Kings Canyon.