Transition to the National Electricity Rules (NER)
In 2013 the Northern Territory Government approved an electricity regulatory reform program. This program seeks to promote competition and efficiency in the electricity supply industry. These reforms include the alignment, where appropriate, of the Northern Territory regulations with those in the national market. These regulations are called the National Electricity Rules.
Two large projects within this program include:
- Transitioning Power and Water’s electricity network regulatory oversight from the local Utilities Commission of the NT to the Australian Energy Regulator (AER), and
- Adopting the National Electricity Rules as in forces in the NT (NT NER) .
Transitioning to the national regulator - AER
The AER is the economic regulator for network service provision across most of Australia. Its function is to set the standards by which network service providers operate and price their network services.
The AER regulates the maximum network revenue that Power and Water can earn by setting the total revenue it may recover from its customers through retailers.
The AER assumed responsibility for the economic regulation of Power and Water's electricity distribution services (network) on 1 July 2015. The AER will now be responsible for assessing Power and Water’s distribution determinations. For further information on this process is available on our 2019-24 Regulatory Determination webpage.
Adopting the National Electricity Rules (NER) as in force in the NT
Adoption of the National Electricity Rules (NER) is an ongoing project, however the first 3 phases are expected to be completed by 1 July 2019. To achieve this transition, Power and Water is required to review and implement a number of changes to our existing policies and procedures, including:
- Introducing a new suite of customer contracts covering network services, including
- Basic Customer Connection Agreement
- Revised Embedded Generator Agreements (PV Solar Systems)
- Generator Supply and Connection Contract
- Reviewing and implementing new system reliability targets and performance indicators, and
- Ongoing consumer and stakeholder engagement plans.
These are only a few of the changes we are required to implement prior to 1 July 2019.