The Finocchiaro CLP Government is reforming our long-neglected Territory electricity system and market as a major step forward to delivering a secure, reliable and affordable electricity network for Territorians with reform legislation passed.
The scale of the challenge is clear: the NT has twice as many blackouts as the rest of the country and they last significantly longer. In Katherine alone, Territorians experience around 6.7 outages a year averaging nearly nine hours each, according to the NT Utilities Commission.
Much of the Territory's electricity infrastructure is ageing, outdated and unable to accommodate the increasing levels of solar energy generation, leaving it vulnerable to blackouts.
Minister for Mining and Energy, and Minister for Renewables Gerard Maley said without urgent reform and investment, performance of our overstretched electricity system will continue to deteriorate, failing the needs of Territorians.
"Unreliable power limits the ability of households, businesses and industries to operate efficiently, slows regional development and job creation," Minister Maley said.
"It also puts the Territory's overall economic development, population growth and future opportunities at risk."
"We inherited a system that simply isn't up to scratch and inaction is a cost we can't afford. The electricity network is decades old and under strain - despite repeated warnings from the independent Utilities Commission, the previous government failed to act."
"We've seen two major blackouts recently that left most of Darwin and Katherine without power, and without action, those events will only become more widespread and last longer."
Amendments to the Electricity Reform Act 2000 will establish new market and governance arrangement for the procuring of electricity assets and energy contracting. This will enable for the central procurement of electricity supply, cutting red tape and ensuring reliable, secure and affordable electricity supply for Territorians.
Additionally, changes to the Electricity System and Market Operator Bill 2025 will see the establishment of the Northern Territory Electricity System and Market Operator (NTESMO) as an independent system controller and market operator, separate from the Power and Water Corporation.
"These reforms are an important step forward, but they're only the beginning," said Minister Maley.
"We know more investments will need to happen to address parts of our electricity system which are decades old and under strain after years of underinvestment."
"These legislative amendments and reforms are a solid start in creating modern, fit-for-purpose assets, strengthening reliability, reducing wholesale electricity costs and ensuring Territorians continue to enjoy some of the lowest power prices in the country."
The Finocchiaro CLP Government already provides significant support to Territorian's retail electricity costs through the Community Service Obligation (CSO), which subsidises power bills for Territory homes and businesses. Without it, Territorians would face the highest energy costs in Australia.
The CSO has now reached a record $192 million in 2025-26, highlighting the scale of the challenge presented by our aging infrastructure ad increasing electricity generation costs.
Mr Maley said the newly established, independent NTESMO will play a central role in planning and delivering future energy infrastructure.
"Territorians deserve an electricity system that works, not one held back by outdated system rules and ageing assets," he said.
"NTESMO will be responsible for developing a periodic Regulated Electricity System Investment Plan (RESIP) to outline the upgrades and investments needed in each region to deliver energy security and reliability at least cost for Territorians.
"This legislation will also cut unnecessary red tape and create greater investor confidence, ensuring the Territory remains an attractive destination for private energy investment and future growth."
