Electricity Ring-fencing Code
The Northern Territory Electricity Ring-fencing Code aims to promote and safeguard competition and fair and efficient market conduct in the electricity supply industry by promoting the simulation of competitive market conduct and preventing the misuse of market power.
Where electricity entities operate both natural monopoly and competitive businesses, the role of ring-fencing is to prevent them from using their position in the regulated sectors to give themselves an advantage in the competitive sectors. This is achieved by separating the regulated business activities, costs and revenues from those related to providing services in the competitive sectors.
The Code was introduced in 2001 and was most recently reviewed and revised in 2020. Information regarding the review available under projects.
The Commission has approved Accounting and Cost Allocation Procedures and Information Procedures under the Code.
The Accounting and Cost Allocation Procedures establish how Power and Water Corporation will establish and maintain separate financial accounts and reports for each of its regulated businesses and for its electricity business as a whole.
The Information Procedures govern the identification, handling, storing, sharing and publishing of such information by Power and Water Corporation, as well as the electronic, physical and procedural security measures relating to such information.
Power and Water Corporation is required to review its procedures to take into account the changes in the fourth version of the Code, and submit reviewed procedures to the Commission for approval, by 26 February 2021.