NTESMO Revenue Proposal 2024-2027 Engagement Program 2024

The Northern Territory Electricity System and Market Operator (NTESMO) performs the function of system controller and market operator for Power and Water Corporation. All costs incurred by Power and Water in performing NTESMO functions are recovered through charges approved by the Utilities Commission of the Northern Territory (the Commission). Through set regulatory periods, NTESMO submits a revenue proposal to be considered and approved by the Utilities Commission.

NTESMO's next regulatory period is due to commence on 1 July 2024. During 2023 Power and Water  undertook a series of stakeholder engagements to inform the development of two proposals, which have been submitted. These include:

  1. 2024-25 Pricing Proposal – The Pricing Proposal was submitted on 29 September 2023 and seeks to administratively roll over charges for 2024-25 -  2024-25 Annual Pricing Proposal (nt.gov.au). The Utilities Commission published its decision on 3 November 2023 and has agreed to the proposal-  System Control Market Operator charges approval letter (nt.gov.au)
  2. 2024-27 Regulatory Proposal – The Regulatory Proposal was submitted on 21 December 2021. It seeks to apply a ‘building blocks’ approach to the revenue requirement from financial year 2024-25, which will set tariffs and charges from financial year 2025-26 (revenue proposal).

Read more  about  our 2024-27 Regulatory Proposal

Image 1: Submission workflow for the two pathways to allow robust consultation.

Pathway one for Pricing determination – release Consultation paper- hold first stakeholder consultation- stakeholder feedback approved and added to pricing proposal – submit to the Utilities commission Pathway two for revenue determination – release Consultation paper- hold first stakeholder consultation- obtain stakeholder feedback and publish engagement report – second stakeholder consultation – submit to the Utilities commission – Utilities commission deliberation question and review Power and Water’s responses and justification- Utilities release final determination.

The Commission has published the 2024-27 NTESMO Regulatory Proposal, along with the Review of proposed 2024-27 system control and market operator charges Consultation paper, which seeks stakeholders' feedback on the approach proposed by NTESMO and, where relevant, on the Commission's initial views or options.

The following provides a summary of the consultation NTESMO undertook with stakeholders in the development of the Pricing Proposal and the Regulatory Proposal.

Consultation one

Consultation one was undertaken in May 2023 with the release of consultation paper and a subsequent forum to discuss.  This consultation provided an outline to inform and gain stakeholder support for setting charges for 2024-25 in the Pricing Proposal.  In addition, this consultation outlined key issues experienced by NTESMO in undertaking the system control and market operator functions, and sought feedback on strategic  and framework issues. The Consultation Paper and submissions received in response can be found below.

Consultation Paper NTESMO Revenue Proposal 2024-2027 PDF, 603.31 KB

Submissions received:

Consultation two

Consultation two commenced in August 2023 with a stakeholder workshop held on 22 August and the subsequent release of the consultation paper. This consultation sought feedback from customers and stakeholders on detailed elements to be included in the Revenue Proposal. This included the initial calculation of charges for the next regulatory period and options to mitigate bill impacts. The Consultation Paper and submissions received in response can be found below

Consultation Paper 2 NTESMO Revenue Proposal 2024-2027 PDF, 559.06 KB

Submissions received

These submissions were considered in the development of the final Regulatory Proposal  submitted to the Utilities Commission.

The next phase of consultation on the NTESMO Revenue Proposal conducted by the Utilities Commission is now open.

Review the NTESMO 2024-27 System Control and Market Operator Charges Regulatory Proposal | Utilities Commission

Visit Utilities Commission to see our supporting documents