Licensing

The Commission is responsible for administering electricity supply industry licensing in the NT under the Electricity Reform Act 2000.

When a licence is required

A licence is required for any of the following operations in the electricity supply industry in the NT:

  • generation of electricity
  • selling electricity
  • owning or operating an electricity network
  • owning or operating a dedicated connection asset
  • system control over a power system
  • operating a wholesale market.

Types of licence

 

Generation

 

Allows a licensee to generate electricity for sale to another licensed generator or retailer.

  

Technologies or business models which include batteries and operating a virtual power plant are considered generation for the purposes of licensing. A licence does not guarantee dispatch, as this is determined by the System Controller.

   

Retail

 

Allows a licensee to trade in electricity, and also sell and retail electricity to customers located within a specified retail area.

   

Network

 Allows a licensee to own or operate an electricity network within a geographic area, and connect the network to another electricity network.
   

Dedicated connection asset

 Allows a licensee to own or operate a dedicated connection asset.
   

System control

 Allows a licensee to exercise system control over the relevant power system by providing the functions of monitoring and controlling to ensure the system operates reliably, safely and efficiently.

The Commission has previously issued Independent Power Producer and Isolated System licences, however these licence types are considered legacy arrangements and are no longer applicable for future licences.

Current licences and exemptions, and existing dedicated connection assets

The Commission’s Register of electricity licences and exemptions, and existing dedicated connection assets lists licences and exemptions in effect, and existing dedicated connection assets.

Exemptions

There are several statutory exemptions from the requirement to hold a licence under the Electricity Reform (Administration) Regulations 2000, including:

  • certain types of generation where it is not connected to electricity infrastructure owned or operated by another licensee and it is generated for the person’s own use
  • the sale of electricity from a person to a customer where electricity is not available for supply to the customer by another licensee (for example, a customer located in a remote area where there is no existing electricity network) and the total amount supplied is no more than 160 MW hours per year
  • the on-supply of electricity, that is, where an owner or occupier of premises, or a person who has the right to use premises, supplies or sells electricity to other users on the premises.

The Commission has granted four class exemptions:

  • small scale generation operations exemption - exempts persons that own and operate generation to a maximum of 2 MW in size from the requirement to hold a generation licence where the electricity generated is used solely or primarily for on-site supply and the generator is connected to the distribution network. The exemption also exempts that person from the requirement to hold a retail licence for the sale of excess electricity exported to the network provided it is sold to a licensed electricity entity (such as a retailer or another generator).
  • small scale generation power purchase agreements exemption - exempts persons from the requirement to hold a generation or retail licence where small scale generation (SSG) (primarily rooftop solar photovoltaic systems) are owned and operated by a third party who then sells electricity to on-site end-users, and surplus electricity to a licensed electricity entity. Exempt parties must register their operations with the Commission.
  • virtual power plants exemption – this exempts operators of virtual power plants (VPP) to a maximum of 2MW in size from the requirement to hold a generation or retail licence. Operators of VPPs must register their operations with the Commission.
  • electric vehicle charging stations exemption – this exempts operators of electric vehicle charging stations from the requirement to hold network and retail licences.

To be eligible under the class exemptions, a person must adhere to the conditions of the exemption (for example, registering with the Commission for the SSG power purchase agreements and VPP exemptions). Failure to adhere to the conditions will mean that person and their operations are not covered by the exemption and are operating without a licence, which may result in a penalty under the Electricity Reform Act 2000. Further information on the exemptions can be found in the Section 87 of the Electricity Reform Act 2000 - Class exemptions - Information sheet.

In addition to these exemptions, the Commission may, with ministerial approval, grant an exemption from licensing or specified provisions of licensing under section 87 of the Electricity Reform Act 2000. More detailed information regarding these exemptions is included in the Exemptions granted under section 87 of the Electricity Reform Act 2000 – Information sheet.

Persons intending to participant in the NT’s electricity supply industry should seek their own legal advice as to whether an exemption, either statutory or granted by the Commission, may be applicable to their circumstances. Exemptions are subject to conditions, which a person must comply with in order for the exemption to remain applicable.

Registration of SSG power purchase agreements and VPPs

The class exemptions for SSG power purchase agreements and VPPs require exempt parties to register their operations with the Commission. To register, the exempt party is to email the Commission (utilities.commission@nt.gov.au), providing details on a primary and alternative contact (name, position, telephone and email), the business (legal name, ACN/ABN and address) and the proposed operations (including location). Further information on the registration process can be found in the Section 87 of the Electricity Reform Act 2000 - Class exemptions - Information sheet.

Licence fees

Licence application and annual licence fees are fixed from time to time by the Minister in accordance with the Electricity Reform Act 2000. The current electricity licence fees schedule, which is fixed in terms of revenue units, was approved by the Treasurer with effect 1 July 2024. The licence fees in dollar terms are determined based on the current value of a revenue unit.

Complaints

Information regarding what complaints the Commission can investigate, who can make a complaint, and how to make a complaint about an electricity licensee are available on the Complaints webpage.

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