Northern Territory Electricity
System and Market Operator

The Northern Territory Electricity System and Market Operator (NTESMO) is responsible for operating the Northern Territory’s three regulated electricity systems (Darwin to Katherine; Alice Springs; Tennant Creek) and administering wholesale electricity market arrangements.

NTESMO’s functions are governed by applicable national and Northern Territory legislation, together with relevant rules, codes, guidelines, standards and procedures. NTESMO’s responsibilities include:

• overseeing the safe, secure and reliable operation of the Northern Territory’s regulated electricity systems
• administering wholesale electricity trading arrangements
• registering generators and retailers participating
• administering market settlements, including calculating settlement amounts and issuing invoices and credit notes
• publishing daily market prices and other relevant wholesale electricity market information.

The Northern Territory Government is reforming the Territory’s electricity systems and market to strengthen security, reliability and efficiency. This is referred to as the Territory Electricity Market (TEM) reform program.

In October 2025, the NTG Minister for Energy introduced the Electricity System and Market Operator Bill 2025 and Electricity Legislation Amendment (Market Reform) Bill 2025 to Parliament. The bills were passed and became Acts, bringing the TEM reform program into effect.

The reform will change how NTESMO operates, including:

• generator scheduling and dispatch
• cash settlement arrangements
• centralised system planning and procurement of energy assets
• establishing NTESMO as a standalone statutory corporation, separating the system control and market operator functions from Power and Water.

The NTG has identified the following key benefits of the reform:

• Centralised planning to coordinate future electricity infrastructure development, including the appropriate size, type, location and timing of assets needed to maintain a stable and reliable electricity system while accommodating increasing behind-the-meter solar generation.
• Centralised procurement and contracting in the Darwin-Katherine electricity system to improve purchasing power, reduce contracting risks and deliver greater system efficiencies.
• Improved governance, with clearer roles and responsibilities, better policy coordination, and increased transparency and market integrity.

For more information about the reforms and structural separation, or to follow the program’s progress, visit:
Department of Mining and Energy | Reforms

The separation of NTESMO from Power and Water will not result in changes to regulated electricity prices paid by eligible customers.

The Northern Territory Government’s Electricity Pricing Order will continue to regulate electricity prices for residential and commercial customers consuming less than 750 MWh of electricity annually (more than 98% of customers). The Pricing Order sets the maximum prices electricity retailers may charge these customers for electricity and related services.