Power and Water Corporation (PWC) holds a System Control Licence to conduct system control and market operator functions. An independently operated business unit within PWC, known as System Control and Market Operator (System Control) provides these regulated services, as well as other services.

PWC, as the licensed system controller, carries out system control and market operator functions in accordance with section 38 of the Electricity Reform Act 2000 (the Act) and the System Control Technical Code.

Under section 39(1) of the Act, a system controller is entitled to impose and recover charges relating to the operations of system control. Section 39(2) of the Act states that the schedule of charges to be applied for the purpose of section 39(1) is to be approved by the Utilities Commission. Currently PWC charges retailers for System Control’s services in accordance with the current system control charge, which was approved by the Commission in 2000.

2018 System Control Charges Review

In late 2018, PWC made a submission to the Commission (Review of System Control Charges and Associated Funding Issues) under section 39(1) of the Act proposing an increase to the system control charge, from the current $0.001 per kWh to $0.0057 per kWh, from 1 July 2019, and an annual review of the charge.

As part of the review, the Commission published an Issues Paper​ and sought feedback from stakeholders, noting four submissions were received.

EDL NGD (NT) Pty Ltd

Jacana Energy

Rimfire Energy Pty Ltd

Territory Generation

The Commission has made its Draft Decision in relation to PWC’s submission.

The Draft Decision provides the Commission’s associated considerations, reasons and recommendations, and seeks feedback from stakeholders by 17 April 2019, noting PWC has provided to the Commission a Revised Review of System Control Charges and Associated Funding Issues proposal dated March 2019, which is intended to be in line with the Commission’s recommendations.

The Commission engaged ACIL Allen Consulting to assist it in making its draft and final decisions. It is recommended that ACIL Allen’s Report to the Commission be read in parallel with the Commission’s Draft Decision.

Pricing of Ancillary Services

Regulation 3 of the Utilities Commission Regulations grants the Commission authority to determine prices relating to the provision of ancillary services in the electricity supply industry.

In October 2003, the Commission began preparatory work to review the ancillary services arrangements and the role of system control in the Territory’s electricity supply industry. Power and Water Corporation, as the holder of the system control licence in the regulated power systems, provided an 'ancillary services arrangement' for the Commission’s consideration and approval in November 2004.

Further development for the pricing for ancillary services has been deferred until the prospect of generation competition re-emerges in the Territory.

Energy Loss Factors Compliance Review

In June 2003, the Commission decided to undertake a review of Power and Water Corporation's compliance with Schedule 13 of the Network Access Code. This followed concerns raised by NT Power regarding the energy loss factors applying while it operated in the Territory's contestable market. Given the technical nature of many of the issues, the Commission engaged technical advisers for the purpose of this review.

The Commission has now released its final findings. A summary of the key findings can be found below. However, due to the commercial-in-confidence nature of information provided, full findings will remain confidential to the parties concerned.

For more information on Energy Loss Factors, see Electricity Networks (Third Party Access) Act in Legislation.