Network Access Code

Third-party access to the services provided by prescribed electricity networks in the Northern Territory is currently governed by the Network Access Code which is a schedule to the Electricity Networks (Third Party Access) Act.

Part 2 of the Code establishes the terms and conditions under which access to an electricity network is to be granted to third parties and lays down the processes to be followed in negotiating and implementing access agreements and for resolving any access disputes.

Section 8(2) of that Act required the Regulatory Minister to review the Code before 30 June 2003. At the Minister’s request, and pursuant to section 8(3) of the Act, the Commission undertook an inquiry into the Code’s effectiveness in facilitating competition and the use of networks by electricity generators and retailers and preventing the exercise of market power by the owners/operators of electricity networks, including in light of experience with application of the Code since 1 April 2000.

This review was a public inquiry consistent with section 31 of the Utilities Commission Act. The Terms of Reference for this Inquiry required the Commission to consult with key interest groups and affected parties.

• Inquiry into the NT Electricity Networks Access Code - Final Report - April 2003

• Inquiry into the Electricity Network Access Code - Draft Report - March 2003

• Review of the Electricity Networks (Third Party Access) Code - Issues Paper - December 2002

The Commission made a number of recommendations for change, with key recommendations relating to:

• the inclusion of a formal Code review process;

• clarification of various pricing issues; and

• provision for the regulator to issue guidelines where a material uncertainty exists regarding the conduct of Code participants.

The Minister has considered those recommendation relating to the pricing regulation provisions of the Code (and associated schedules) and the Code was amended in October 2003 to ensure that no uncertainty would impinge on the 2004 Regulatory Reset (the review of network price regulation methodology required in the lead-up to the commencement of the second regulatory control period).

The Minister has yet to announce the outcome of his review of the non-price related recommendations.