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






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.




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1 Chapter 1: Commissioners Overview I am pleased to present the Annual Report for 2014-15 for the Utilities Commission of the Northern Territory (Commission), recording key achievements and activities of the Commission for that year. Substantial achievements in electricity market reform in the Territory occurred in 2014-15. These included the structural separation of Power and Water Corporation (Power and Water), commencement of operations for Territory Generation and Jacana Energy, implementation of an interim wholesale electricity market (I-NTEM) and the transfer of network access and price regulation to the Australian Energy Regulator (AER) effective from 1 July 2015. The Commission supports the objectives of the Territory Governments electricity market reform program and, during the year, provided advice and assistance on various aspects of the reform program, within its legislative authority, including the transfer of network access and price regulatory functions to the AER, and implementation of the I-NTEM. In May 2015, the Commission considered and approved amendments to the System Control Technical Code (SCTC) to facilitate the I-NTEM. A key objective for the Commission in 2014-15 was to contribute, as far as possible, to a measurable improvement in the technical performance of the Territorys power system. In particular, the reliability of the Darwin-Katherine power system in recent years has been inadequate, with frequent power system incidents involving customer load shedding. The Commission has worked closely with the relevant bodies to understand the reasons for these incidents and to establish the basis for improved performance. In the second half of 2014-15, there was a significant improvement in the reliability of the Darwin-Katherine power system, with fewer load shedding incidents (as a result of a single generator outage) and reduced severity of outages. The Commission acknowledges the significant work undertaken by Power and Water System Control and Territory Generation in 2014-15 to better understand the performance of generation and transmission assets in the Darwin-Katherine region. As part of its licensing functions for the regulated industries, the Commission issued an electricity retail licence to Rimfire Energy Pty Ltd (Rimfire) and approved electricity generation and retail licences for EDL NGD (NT) Pty Ltd (EDL) pending network access agreement finalisation. The Commission continued discussions with Northern Power Opco Pty Ltd (Northern Power) on its application for a generation licence. During 2014-15, the Commission focused on ensuring that its existing functions were undertaken in an effective and efficient manner, including through collaborative work with Territory Government agencies and regulatory bodies in other jurisdictions. The Commission acknowledges advice and assistance from the Australian Energy Market Operator (AEMO), AER and the Essential Services Commission of South Australia on a variety of regulatory matters.