The Northern Territory Government has introduced reforms to the territory’s electricity market and system which it says will deliver system security and reliability at lowest cost.
The NT Electricity System and Market Operator (NTESMO) Bill 2025 and Electricity Legislation Amendment (Market Reform) Bill 2025 will establish NTESMO as an independent system controller and market operator, introduce centralised planning and procurement powers and processes, and deliver a clear framework of electricity market rules in line with industry best practice.
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NT Minister for Mining, Energy and Renewables Gerard Maley said the much-needed reforms would maximise purchasing power, put downward pressure on system costs and facilitate a more stable and reliable electricity system, future-proofed for Territorians.
“Last week we saw a mass power failure because of a lack of investment into our generators and other electrical assets, which are reaching the end of their life. This is a stark reminder that our current ageing energy infrastructure is no longer fit for purpose,” Maley said.
“Our government is proactively fixing another legacy problem to keep the lights on through contemporary reforms and address our neglected, unreliable energy system.”
The legislation removes unnecessary red tape for investors and introduces a contemporary and fair energy framework for Territorians, with a strong focus on energy affordability.
Minister Maley said the reforms represented a significant overhaul of the Electricity Reform Act 2000, providing a future-proofed and streamlined approach tailored to the territory’s unique circumstances.
“We want to have a clear, whole-of-system electricity investment plan, de-risking investment, promoting industry confidence and optimising costs through centralisation and strengthened governance measures. This will provide commercial certainty for electricity project proponents and benefit Territorians for generations to come,” he said.
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The reforms also consider consumer energy patterns across the territory, including the increasing uptake of solar and the vital role of gas, while removing barriers for emerging technologies.
“These reforms are not just technical changes. They are the foundation of a modern electricity system for Darwin, Katherine, Tennant Creek and Alice Springs, restoring confidence in our infrastructure for Territorians,” Maley said.
