Chapter 4 monopoly electricity services, licence market participants and enforce regulatory standards for market conduct and service performance. are currently three retailers operating in the market systems – Electricity Supply PWC, QEnergy and ERM Retail. Industry In the three market systems, PWC is currently the main electricity generator, with almost 92 per cent of generation capacity. Although there are privately owned generators operating in the Darwin-Katherine and The electricity supply industry in Alice Springs systems and exporting electricity into those systems, these the Territory is regulated by the suppliers generate electricity under contract for PWC Generation rather Electricity Reform Act, Electricity than selling directly to an electricity retailer. PWC Generation provides Networks (Third Party Access) the fuel used for electricity generation and takes all electricity generated. Act, Utilities Commission Act and associated legislation. This PWC is also the network service provider and is responsible for statutory framework was system control. The Darwin-Katherine, Alice Springs and Tennant introduced on 1 April 2000. The Creek networks are not interconnected, and are separated by long statutory framework is primarily distances. focused on regulating the activities Electricity supply in regional and remote centres of the Territory is mainly of electricity industry participants managed by the Territory Government and the service provider through and customers in the a contract for service model. The Commission has limited regulatory Alice Springs and functions in regional and remote centres, with the main responsibility Tennant Creek power systems – being licensing. referred to as the market systems. Key elements of the statutory The Commission has the following functions in the electricity supply framework are: industry: third-party access to the to perform licensing functions, granting licences to to Darwin-Katherine, Alice undertake electricity generation, electricity networks, system Springs and Tennant Creek control and retail operations in the Territory; electricity networks; to develop standards of service and supply and to make codes and staged introduction of retail rules relating to the conduct or operations of the electricity supply contestability, with all industry or individual licensed entities; customers becoming to monitor, and promote improvement in, standards and conditions contestable from 1 2010; of service and supply and the operations of the electricity supply and industry and licensed entities; an independent economic to regulate prices charged by PWC Networks for provision of regulator, the Utilities electricity network services (transport of electricity across the network) Commission, to regulate and charges
Chapter 4 Electricity Supply Industry The electricity supply industry in the Territory is regulated by the Electricity Reform Act, Electricity Networks (Third Party Access) Act, Utilities Commission Act and associated legislation. This statutory framework was introduced on 1 April 2000. The statutory framework is primarily focused on regulating the activities of electricity industry participants and customers in the Alice Springs and Tennant Creek power systems – referred to as the market systems. Key elements of the statutory framework are: third-party access to the Darwin-Katherine, Alice Springs and Tennant Creek electricity networks; staged introduction of retail contestability, with all customers becoming contestable from 1 2010; and an independent economic regulator, the Utilities Commission, to regulate monopoly electricity services, licence market participants and enforce regulatory standards for market conduct and service performance. are currently three retailers operating in the market systems – PWC, QEnergy and ERM Retail. In the three market systems, PWC is currently the main electricity generator, with almost 92 per cent of generation capacity. Although there are privately owned generators operating in the Darwin-Katherine and Alice Springs systems and exporting electricity into those systems, these suppliers generate electricity under contract for PWC Generation rather than selling directly to an electricity retailer. PWC Generation provides the fuel used for electricity generation and takes all electricity generated. PWC is also the network service provider and is responsible for system control. The Darwin-Katherine, Alice Springs and Tennant Creek networks are not interconnected, and are separated by long distances. Electricity supply in regional and remote centres of the Territory is mainly managed by the Territory Government and the service provider through a contract for service model. The Commission has limited regulatory functions in regional and remote centres, with the main responsibility being licensing. The Commission has the following functions in the electricity supply industry: to perform licensing functions, granting licences to to undertake electricity generation, electricity networks, system control and retail operations in the Territory; to develop standards of service and supply and to make codes and rules relating to the conduct or operations of the electricity supply industry or individual licensed entities; to monitor, and promote improvement in, standards and conditions of service and supply and the operations of the electricity supply industry and licensed entities; to regulate prices charged by PWC Networks for provision of electricity network services (transport of electricity across the network) and charges
AR-UC-1112.docx