{"id":"electricity-reform-system-control-and-market-operator-functions-code-regulations-2015","name":"ELECTRICITY REFORM (SYSTEM CONTROL AND MARKET OPERATOR FUNCTIONS CODE) REGULATIONS 2015","slug":"electricity-reform-system-control-and-market-operator-functions-code-regulations-2015","collection":"regulation","jurisdiction":"nt","status":"in_force","isInForce":true,"actNumber":null,"makingDate":null,"administeringDepartment":null,"currentVersion":{"id":176791,"registerId":"nt-electricity-reform-system-control-and-market-operator-functions-code-regulations-2015-current","compilationNumber":null,"startDate":"2026-04-05","status":"InForce","reasons":null,"registeredAt":null},"sections":[{"sectionNumber":"1","sectionType":"section","heading":"ELECTRICITY REFORM (SYSTEM CONTROL AND MARKET OPERATOR FUNCTIONS CODE) REGULATIONS 2015","content":"NORTHERN TERRITORY OF AUSTRALIA\nELECTRICITY REFORM (SYSTEM CONTROL AND MARKET OPERATOR\nFUNCTIONS CODE) REGULATIONS 2015\nAs in force at 19 November 2021\nTable of provisions\n1 Citation ............................................................................................ 1\n2 Commencement .............................................................................. 1\n3 Compliance with System Control and Market Operator\nFunctions Code ............................................................................... 1\nSchedule System Control and Market Operator\nFunctions Code\nENDNOTES\n\n\n\nNORTHERN TERRITORY OF AUSTRALIA\n____________________\nAs in force at 19 November 2021\n____________________\nELECTRICITY REFORM (SYSTEM CONTROL AND MARKET OPERATOR\nFUNCTIONS CODE) REGULATIONS 2015\nRegulations under the Electricity Reform Act 2000\n1 Citation\nThese Regulations may be cited as the Electricity Reform (System\nControl and Market Operator Functions Code) Regulations 2015.\n2 Commencement\nThese Regulations commence on 1 July 2015.\n3 Compliance with System Control and Market Operator\nFunctions Code\nFor section 24(1)(b) of the Act, an electricity entity must comply with\nthe System Control and Market Operator Functions Code, as set\nout in the Schedule, to the extent that it is applicable to the entity.\n\nSchedule System Control and Market Operator Functions Code\nElectricity Reform (System Control and Market Operator Functions Code) Regulations 2015 2\nSchedule System Control and Market Operator Functions\nCode\nregulation 3\n1 Citation\nThis Code may be cited as the System Control and Market\nOperator Functions Code.\n2 Definitions\nIn this Code:\nconnect means to establish an effective link via installation of the\nnecessary connection assets.\nconnection assets mean all of the electrical equipment that is\nused only in order to transfer electricity to or from an NAC electricity\nnetwork at the relevant connection point and includes any\ntransformers or switchgear at the relevant point or which is installed\nto support or to provide backup to such electrical equipment as is\nnecessary for that transfer.\nconnection point means a point at which electricity is transferred\nto or from an NAC electricity network.\nelectricity entity, for an NAC electricity network, means an\nelectricity entity that uses the NAC electricity network.\nentry point means a connection point at which electricity is more\nlikely to be transferred to an NAC electricity network than to be\ntransferred from the NAC electricity network.\nexit point means a connection point at which electricity is more\nlikely to be transferred from an NAC electricity network than to be\ntransferred to the NAC electricity network.\ngenerator user means a person who has been granted access to\nan NAC electricity network by a network provider and who supplies\nelectricity into the NAC electricity network at an entry point.\nload means the amount of electrical energy delivered at a defined\ninstant at a connection point or aggregated over a group of\nconnection points.\nload user means a person who has been granted access to an\nNAC electricity network by a network provider and who takes\nelectricity from the NAC electricity network at an exit point.\n\nSchedule System Control and Market Operator Functions Code\nElectricity Reform (System Control and Market Operator Functions Code) Regulations 2015 3\nNAC electricity network, see section 2A of the Electricity\nNetworks (Third Party Access) Act 2000.\nnetwork energy loss means the energy loss incurred in the\ntransportation of electricity from an entry or transfer point to an exit\npoint or another transfer point on an NAC electricity network.\nnetwork provider, for an NAC electricity network, means a network\nprovider that uses the NAC electricity network.\nnetwork user, for an NAC electricity network, means a network\nuser that uses the NAC electricity network.\nout-of-balance energy means the supply of electrical energy to a\nload user by a generator user other than the generator user who is\nparty to the access agreement when there is a mismatch between\nthe transfer of electrical energy to and from an NAC electricity\nnetwork by the parties to the access agreement.\nsystem controller, for an NAC electricity network, means the\nsystem controller for the NAC electricity network.\ntransfer point means a point at which electricity is transferred\nbetween differently owned and operated NAC electricity networks.\n3 Application to NAC electricity networks\nThis Code applies in relation to all NAC electricity networks.\n4 General\n(1) This clause applies in relation to the services provided by a\ngenerator user for an NAC electricity network that relate to the\nprovision of out-of-balance energy services to network users.\n(2) Out-of-balance energy services involve:\n(a) the electrical energy dispatched by a generator user into the\npower system at the request of the system controller that has\nthe effect of meeting any mismatch between the transfer of\nelectrical energy into and out of the NAC electricity network by\nthe parties to an access agreement; and\n(b) the provision of any generation capacity by a generator user in\nresponse to a request of the system controller to meet a\nshortfall between a network user's own effective generation\ncapacity and its customers' load.\n\nSchedule System Control and Market Operator Functions Code\nElectricity Reform (System Control and Market Operator Functions Code) Regulations 2015 4\n(3) The system controller's assessment of the out-of-balance energy\nsupplied or demanded by a generator user must take full account of\nsuch network energy losses as are determined from time to time by\nthe Utilities Commission.\n(4) The prices of any electrical energy supplied by a generator user in\naccordance with the terms of an access agreement or a standby\ngeneration agreement are subject to commercial negotiation\nbetween the parties concerned and are not subject to regulation\nunder this Code.\n\nENDNOTES\nElectricity Reform (System Control and Market Operator Functions Code) Regulations 2015 5\nENDNOTES\n1 KEY\nKey to abbreviations\namd = amended od = order\napp = appendix om = omitted\nbl = by-law pt = Part\nch = Chapter r = regulation/rule\ncl = clause rem = remainder\ndiv = Division renum = renumbered\nexp = expires/expired rep = repealed\nf = forms s = section\nGaz = Gazette sch = Schedule\nhdg = heading sdiv = Subdivision\nins = inserted SL = Subordinate Legislation\nlt = long title sub = substituted\nnc = not commenced\n2 LIST OF LEGISLATION\nElectricity Reform (System Control and market Operator Functions Code) Regulations\n(SL No. 15, 2015)\nNotified 30 June 2015\nCommenced 1 July 2015 (r 2)\nNational Electricity (Northern Territory) (National Uniform Legislation) Consequential\nAmendment Regulations 2019 (SL No. 16, 2019)\nNotified 1 July 2019\nCommenced 1 July 2019 (r 2)\nElectricity Reform Legislation Amendment Act 2021 (Act No. 23, 2021)\nAssent date 18 November 2021\nCommenced 19 November 2021 (s 2)\n3 GENERAL AMENDMENTS\nGeneral amendments of a formal nature (which are not referred to in the table\nof amendments to this reprint) are made by the Interpretation Legislation\nAmendment Act 2018 (Act No. 22, 2018) to: r 1 and sch.\n4 LIST OF AMENDMENTS\nsch amd No. 16, 2019, r 27; Act No. 23, 2021, s 14","sortOrder":0}],"analysis":{"flash_summary_failed":{"failed":true,"reason":"A positive credit balance is required for all requests, including BYOK, so fallback providers remain available. Add credits at https://vercel.com/d?to=%2F%5Bteam%5D%2F%7E%2Fai%3Fmodal%3Dtop-up to continue.","source":"analysis-cron"},"issue_detection":{"absurdities":[],"contradictions":[]},"summary":{"complexity_score":6,"scope_assessment":{"changed":true,"description":"The administrative responsibility appears to have evolved from what would typically be a single-agency instrument into a multi-agency arrangement spanning Mining and Energy, Treasury and Finance, and the Minister for Essential Services. This split — particularly carving out price regulation and licence fees to Treasury — suggests the scope was broadened or restructured beyond a straightforward technical code into one that also encompasses economic regulation and consumer protection obligations, likely reflecting amendments or machinery-of-government changes since the original 2015 making."},"complexity_factors":["Split administrative responsibility across three separate government agencies, creating potential coordination issues and ambiguity about jurisdictional boundaries","Covers multiple distinct regulatory domains simultaneously: technical system operations, market functions, pricing, licensing, and consumer service obligations","Operates as subordinate legislation under the Electricity Reform Act, meaning readers must cross-reference the parent Act to fully understand the regulatory framework","Sector-specific technical content (electricity grid management, market operator functions) requires specialist knowledge to interpret correctly","Has been reprinted multiple times (Reprint 3), suggesting amendments over time that may create complexity in tracking the current operative provisions","Northern Territory-specific regime, sitting outside the national electricity market framework applicable in other states, reducing availability of familiar reference points"],"plain_english_summary":"These regulations implement the Electricity Reform Act in the Northern Territory by setting the operational and market rules for system control, market administration, licensing, price regulation, and licence fees. \n\nThey affect generators, network operators, retailers and, indirectly, all NT electricity users by governing how the grid is run, how electricity is bought and sold, and how prices and service obligations are set—providing the legal framework for reliability, market fairness, and consumer protections."},"flash_summary":{"complexity_score":4,"scope_assessment":{"changed":false,"description":"The instrument implements a targeted code applying to all NAC electricity networks (reg.3) and sets operational rules for out‑of‑balance energy and loss accounting (Code cl.4). It does not expand the universe of regulated entities or add regulatory price-setting powers; pricing remains commercial (Code cl.4(4))."},"complexity_factors":["Cross-references to external Acts for key definitions (NAC electricity network refers to Electricity Networks (Third Party Access) Act) (Code cl.2).","Delegated determinations: Utilities Commission fixes network energy losses that feed into operational accounting (Code cl.4(3)).","Operational discretion: system controller requests dispatch of out-of-balance energy (Code cl.4(2)).","Mix of regulatory and commercial regimes: prices for access/standby left to commercial negotiation, not regulated by the Code (Code cl.4(4)).","Concise statutory text that nevertheless requires technical interpretation (definitions of connection assets, entry/exit/transfer points) (Code cl.2)."],"plain_english_summary":"These regulations adopt a short System Control and Market Operator Functions Code and make it binding on electricity entities that use NAC electricity networks (reg.3; Code cl.1). The Code defines how system controllers may request generator users to supply ‘out‑of‑balance’ energy, requires assessments to include network energy losses set by the Utilities Commission, and leaves payment terms to commercial negotiation (Code cl.4(2)–(4)). Electricity entities must comply with the Code; system controllers and the Utilities Commission retain operational and measurement discretion."},"kimi_summary":{"content_quality":"ok","complexity_score":3,"scope_assessment":{"changed":false,"description":"The legislation appears to maintain its original narrow scope. It was enacted in 2015 to establish a Code governing system control and market operator functions, and the 2021 amendments (per the endnotes) appear to be minor technical amendments. The substance remains focused on out-of-balance energy services and system control functions as originally intended."},"complexity_factors":["Short document (5 pages including endnotes)","Only 12 defined terms in clause 2","Minimal cross-referencing — only references to the parent Electricity Reform Act 2000 and the Electricity Networks (Third Party Access) Act 2000","Simple conditional structure — one main operational clause (clause 4) with straightforward subclauses","No nested exceptions or complex conditional logic","Single substantive obligation (compliance with the Code) in regulation 3","Limited operational content — the Code itself is quite skeletal, establishing definitions and general principles rather than detailed operational rules"],"plain_english_summary":"**What this legislation does:**\n\nThese Regulations create a **System Control and Market Operator Functions Code** that governs how electricity flows are managed in the Northern Territory's regulated electricity networks (called \"NAC electricity networks\" — networks where third parties can get access to transport electricity).\n\n**Who it affects:**\n\n- **Generator users**: People or companies who generate electricity and feed it into the network\n- **Load users**: People or companies who take electricity out of the network to use it\n- **Network providers**: Companies that own and operate the physical electricity networks\n- **System controllers**: The entities responsible for keeping the electricity system stable and balanced in real-time\n\n**Why it matters:**\n\nElectricity systems must stay in perfect balance — supply must exactly match demand every second. This Code deals with **\"out-of-balance energy\"** — the emergency electricity that generators must supply (or the shortfalls that occur) when there's a mismatch between what was planned and what actually happens.\n\nKey points:\n- When a generator user and load user have an agreement but their electricity transfers don't match up, someone has to supply the difference — this is \"out-of-balance energy\"\n- The **system controller** can direct generator users to provide this balancing electricity to keep the lights on\n- The system controller must account for **network energy losses** (electricity lost as heat when moving through power lines) when calculating these imbalances\n- **Prices for this energy are negotiated commercially** — the Code doesn't set prices, it just creates the framework for how the balancing service works\n\nIn short: this is the rulebook for keeping the Northern Territory electricity grid stable when real-world electricity flows don't match what was planned."}},"importantCases":[],"_links":{"self":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015","history":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015/history","analysis":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015/analysis","conflicts":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015/conflicts","importantCases":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015/important-cases","documents":"/api/acts/electricity-reform-system-control-and-market-operator-functions-code-regulations-2015/documents"}}