Review of NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal

Under the Electricity Reform Act 2000, the Commission is responsible for approving charges relating to the operations of a system controller. This review assesses a regulatory proposal received from Power and Water Corporation (PWC) for charges relating to the system control and market operator functions provided by the Northern Territory Electricity System and Market Operator (NTESMO) for the three year period, from 1 July 2024 to 30 June 2027.

Status: consultation

The Commission invites submissions from stakeholders on a Consultation Paper, which seeks feedback on NTESMO’s proposed approach to determining required revenue (and thus charges) for the upcoming regulatory period and the Commission’s initial views or options in considering the proposed approach. Submissions are requested by 5pm Tuesday, 16 July 2024. Submissions should be provided electronically by email to utilities.commission@nt.gov.au in Adobe Acrobat or Microsoft Word format.

NTESMO is a business unit within PWC that carries out system control functions for the Territory’s three major electricity networks – Darwin-Katherine, Alice Springs and Tennant Creek. Since 2015, NTESMO has also been the market operator for the Darwin-Katherine interim Northern Territory Electricity Market.

In late December 2023, PWC submitted NTESMO’s 2024-27 regulatory proposal to the Commission. Charges for the first year of the regulatory period (1 July 2024 to 30 June 2025) are covered by interim arrangements approved by the Commission in November 2023, which roll forward approved regulated charges for 2023-24, adjusted for inflation. NTESMO’s regulatory proposal submits proposed system control and market operator charges for 2025-26 and 2026-27 to the Commission for approval.

NTESMO’s regulatory proposal presents a more complex approach to the calculation of required revenue (and thus charges) relative to the approach taken for the current 2019-20 to 2023‑24 regulatory period. In light of this, the Commission is consulting with stakeholders on the methodology to be adopted in considering NTESMO’s regulatory proposal. Analysis of data and other information submitted to support the level of proposed charges will be undertaken by the Commission in the next stage of the review.

Related documents

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Review of NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal - Consultation Paper

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 2.1

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 2.2

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 2.3

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 4.1

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 7.1

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 7.2

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 10.1

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 11.1

NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal – Attachment 11.2