Consultation - Proposed amendments to the System Control Technical Code to introduce an Interim Wholesale Electricity Market

In September 2013, the Treasurer requested the Commission undertake a review into appropriate wholesale market arrangements for the Territory, and to recommend preferred arrangements to be adopted initially in the Darwin-Katherine generation market.

The Commission proposed the establishment of a wholesale Northern Territory Electricity Market (NTEM) that comprised separate investment and energy trading mechanisms. Further, the Commission indicated that interim energy trading arrangements could be established as a transition to a final wholesale electricity market. The Commission’s report to the Treasurer is available at Review of Wholesale Electricity Generation Market Arrangements for the Northern Territory.

The Territory Government endorsed the strategic direction outlined in the Commission’s report and approved the development and implementation of interim energy trading arrangements to facilitate transition to the final wholesale electricity market.

Power and Water Corporation (PWC) has proposed amendments to the System Control Technical Code (the Code) to facilitate implementation of the interim wholesale electricity market (I-NTEM) based on a market design functional specification developed by the Department of Treasury and Finance’s technical advisors, Oakley Greenwood Pty Ltd.

PWC’s System Control licence allows that PWC may amend the Code at any time, but only with the prior written approval of the Commission. PWC must also consult with all electricity entities holding a generation licence, network licence or retail licence when amending the Code.

PWC has commenced a consultation process and is seeking comment from electricity licensees and stakeholders about the proposed amendments to the Code to implement the I-NTEM in the Darwin-Katherine power system.

In accordance with good regulatory practice, the Commission notifies system participants of the consultation process on the proposed amendments to the Code to implement the I-NTEM. Details on PWC’s consultation process, proposed amendments to the Code and market design functional specification can be found at Consultation on the Interim Northern Territory Electricity Market. Submissions are due by 5pm 17 April 2015 and should be provided to the Power System Controller (contact details are provided on PWC’s website). The Commission will consider any submissions when it considers the proposed amendments to the Code.