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Market Issues

In September 2002, NT Power – the only competitor to Power and Water in the Territory’s electricity market – exited the electricity market, citing an inability to secure on-going gas supplies.

In light of these developments, in January 2003 the Government decided to suspend the contestability timetable that would have seen full retail contestability achieved by April 2005. This has the effect of halting contestability at the 750MWh per annum level until prospects for competition re-emerge.

Review of Full Retail Contestability for NT Electricity Customers

In August 2009, the Treasurer approved Terms of Reference for the Commission to undertake a review of Full Retail Contestability (FRC) for NT electricity customers.

The Commission is to report on the objectives of FRC in the Northern Territory context, the conditions necessary for competition to develop in the Territory, and the prudent actions Government should take to encourage the development of competition. The inquiry is to present the various options for the design and rules of FRC arrangements for electricity in the Northern Territory and make an assessment of the likely costs, benefits, and feasibility of each.

The Review commenced in August 2009 with the release of an Issues Paper setting out the Commission's assessment of the issues and recommendations for the Review. A Issues Paper was released for public comment in October 2009. The Final Report was presented to the Minister in December 2009.

 

 

The Current State of the Electricity Market

As part of the Commission's role in keeping the market informed, the Commission has issued the following reports in relation to the composition of the Territory's electricity market, with the main focus being the on the size of the contestable and potentially contestable market.

The Commission has been advised by Power and Water that previously published electricity supply information in the 1999-00 and 2000-01 reports contained some errors. The Commission has revised these reports.

 

 

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