2024-27 System Control and Market Operator Charges Review - Regulatory framework and NTESMO initial regulatory proposal
Under the Electricity Reform Act 2000, the Commission is responsible for approving charges relating to the operations of a system controller. The Commission is reviewing charges relating to the system control and market operator functions proposed by the Northern Territory Electricity System and Market Operator (NTESMO) for the three year period, from 1 July 2024 to 30 June 2027.
Status: final
- Initiate
- Consultation
- Final
The Commission has released the 2024-27 System Control and Market Operator Charges Review - Decision paper – regulatory framework, which sets out the regulatory framework to apply to determining system control and market operator charges. The decision paper also provides the Commission’s decision and associated reasoning for not approving NTESMO’s initial regulatory proposal for market operator and system control charges for the 2024-27 regulatory period.
NTESMO is a business unit within the Power and Water Corporation 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, Power and Water Corporation 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 submitted proposed system control and market operator charges for 2025-26 and 2026-27 to the Commission for approval.
NTESMO’s regulatory proposal presented a more complex approach to the calculation of required revenue (and thus charges) relative to the approach taken for the 2019-20 to 2023‑24 regulatory period. In light of this, the Commission consulted with stakeholders, releasing a Consultation Paper on 4 June 2024, which sought feedback on the economic regulatory framework for determining system control and market operator charges including the Commission’s initial views or options on the regulatory framework. Submissions to the Consultation Paper closed on 16 July 2024.
The Commission has decided not to approve NTESMO’s initial regulatory proposal and NTESMO is required to submit a new proposal, which aligns with the regulatory framework and addresses issues found in the initial proposal, to the Commission for approval.
Related documents
Initiate
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
Consultation
NT Department of Treasury and Finance submission
Territory Generation submission
Final
2024-27 Review of system control and market operator charges - Decision paper - regulatory framework