Annual Report 2014/2015 Utilities Commission
Tabled paper 1571
Tabled Papers for 12th Assembly 2012 - 2016; Tabled Papers; ParliamentNT
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.
27 In approving the proposed standard network access tariffs, the Commission considered the approved tariffs and charges to comply with the requirements and relevant principles specified in the Network Access Code. The Network Access Code allows the regulator to act as an alternative dispute resolution body should there be any concerns the prices charged for excluded network access service are not fair and reasonable. If Power and Water and affected network users are unable to reach agreement on what constitutes fair and reasonable terms for the excluded network access services, the regulator may determine what constitutes fair and reasonable terms. The Commission was not advised of any formal disputes in 2014-15. This function was transferred to the AER effective 1 July 2015. System Control Charges and Pricing of Ancillary Services The Commission approves charges imposed by the System Controller and also has authority to determine prices for ancillary services to manage the quality of electricity supplied by the electricity supply industry. The system control charges that applied during 2014-15 are those approved by the Commission with effect from 1 July 2004 and continue until superseded. In May 2015, the Commission directed the System Controller to commence a review of ancillary services within six months, including the adequacy of such services to ensure the system operates reliably, safely and securely. On completion of the review, the Commission intends to make a determination relating to the prices for providing ancillary services in accordance with section 22 of the Utilities Commission Act and section 3 of the Utilities Commission Regulations. System Imbalance Charges 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 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. In May 2015, the Commission approved Version 5.0 of the SCTC prepared by the System Controller, which sets out the arrangements for economic dispatch and out-of-balance settlement for operation of the I-NTEM. Electricity Pricing Orders Caps on retail electricity prices paid by small customers, whether residential or commercial, are regulated directly by the Territory Government through an Electricity Pricing Order (EPO). The Commission is required to enforce compliance with an EPO as if it were a determination of the Commission under the Utilities Commission Act. During 2014-15, the Commission undertook an audit of compliance with the Tranche 4 Electricity Pricing Order as part of its annual compliance audit program. The Commission noted a number of compliance issues and accepts the issues have now been appropriately resolved.