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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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19 Table 1: Types of licences currently issued Licence type Scope Standard Generation licence To generate electricity for sale. To sell electricity to electricity entities holding generation or retail licences (or as otherwise stated in the licence). Special Generation licence Independent Power Producer (IPP)a To generate electricity for sale. To sell electricity only to electricity entities holding a standard generation licence (or as otherwise stated in the licence). Network licence To operate the electricity network in the geographical area stated in the licence. If stated in the licence to connect the electricity network to another electricity network. Retail licence To trade in electricity (where trade means the buying and selling of electricity other than to final consumers). To retail electricity to customers who own or occupy premises anywhere in the Territory (where retail means the selling of electricity to specified groups of final consumers). Special licence Isolated system operationsb To generate electricity at specified electricity generating plants. To sell electricity to electricity entities holding a generation licence or a retail licence. To sell electricity to customers, but only in respect of electrical installations or premises that are situated within specified locations. To own and operate an electricity network within specified geographic areas and connect that network to another specified electricity network. System Control licencec To monitor, plan and control the operation of the power system with a view to ensuring that the system operates safely and securely, including by issuing directions to electricity entities that are engaged in the operation of the power system, or contribute electricity to, or take electricity from, the power system. In May 2015, the Electricity Reform (Administration) Regulations were amended to prescribe operating a wholesale market as an operation for which a licence is required. The Regulations also define that an entity (Power and Water) that is licensed for system control is also licensed to operate a wholesale market in relation to that power systemd. a An Independent Power Producer licence is a cut down version of a generation licence for those parties who do not wish to participate fully in the electricity supply market and instead generate electricity under contract for another generator. b An isolated system operations licence is a combination generation, network and retail licence for entities operating in remote locations, for example where a mining company supplies electricity to a nearby town that predominantly houses workers associated with the mine. c A system control licence is only issued where the power system is of sufficient size and complexity to warrant monitoring and control by an at arms length system controller. In isolated communities with a single generator of electricity, management of system loads and frequency control is undertaken by the generator. Co-ordination of generation with third-party inter-connected networks would be a matter for normal commercial contractual arrangements. d In relation to the I-NTEM, System Control is the Market Operator responsible for wholesale trading arrangements between generators and retailers, registration of market participants, market settlements, and daily publication of market prices and other wholesale trading data.