Electricity pricing reforms
As part of the 2025 Budget, the government announced that regulated electricity, water and sewerage tariffs will increase by 3% in 2025-26.
The Northern Territory (NT) Government subsidises electricity for households and businesses through the electricity uniform tariff community service obligation (CSO). The CSO covers the gap between what customers pay and the actual cost of supplying electricity.
Territory electricity tariffs are among the lowest in Australia. Without the CSO, an average Darwin household would pay almost 50% more for electricity, with even higher costs in regional and remote areas.
The cost of supplying electricity has increased faster than tariffs for many years. As a result, the CSO has grown significantly and is expected to rise by $51 million, totalling $192 million in 2025-26.
To keep the CSO financially sustainable and ensure subsidies are targeted to those who need them most, the government is making changes to regulated electricity tariffs under the Electricity Pricing Order.
Reforms to electricity tariffs will be implemented in three phases:
From 1 July 2025:
- a new tariff will apply to commercial customers using between 500 and 750 megawatt-hours (MWh) of electricity per year. This tariff is set at 5% above the standard commercial tariff
- NT and Commonwealth Government customers will move to cost-reflective tariffs
- the standard feed-in tariff for households and businesses exporting to the grid between 3pm and 9pm will double to 18.66 cents per kilowatt-hour.
From 1 January 2026:
- new time-of-use tariffs will be available for households and small businesses. These tariffs offer different prices at different times of the day and encourage the use of electricity when demand is lower.
From 1 July 2026:
- fixed daily charges for high voltage customers will move to cost-reflective levels
- local government councils will be subject to cost-reflective tariffs.
The peak feed-in tariff will continue to encourage customers to export solar energy during periods of high demand and will support the growth of rooftop solar and battery systems.
Time-of-use tariffs
Time-of-use tariffs apply different prices depending on the time of day.
Growth in rooftop solar means electricity demand is now lowest during daylight hours, especially in the Dry season. This creates system-security challenges in the Darwin-Katherine grid. The current time-of-use tariffs in the electricity pricing order charge a higher rate between 6am and 6pm, which does not reflect the actual cost of electricity supply and does not offer any significant incentive for customers to switch from the standard tariff resulting in minimal uptake to date.
From 1 January 2026, two new time-of-use tariffs will be available, a domestic time-of-use tariff for households and a commercial time-of-use for small business customers. The new tariffs replace the existing switch-to-six time-of-use tariffs. Key elements of the new time-of-use tariffs include:
- two time periods aligned with periods of network demand and solar generation:
- off-peak period – 9am to 3pm everyday
- peak period – all other times
- a discounted rate during off-peak periods compared to the standard tariff
- a small premium to the standard tariff for peak period consumption to encourage efficient electricity use.
Time-of-use tariffs | Tariff component | Charge amount |
|---|---|---|
Domestic time-of-use tariff | Off peak (9am – 3pm everyday) Peak (all other times) Fixed daily charge | 24.5293 cents per kWh 31.5446 cents per kWh 59.31 cents per day |
Commercial time-of-use tariff | Off peak (9am – 3pm everyday) Peak (all other times) Fixed daily charge | 28.4115 cents per kWh 38.1946 cents per kWh 92.62 cents per day |
If you're on a switch-to-six time-of-use tariff, you’ll have until 30 June 2026 to move to either the new time-of-use tariffs or the standard tariff.
To be eligible for the new time-of-use tariffs you will need to have an electricity meter capable of recording electricity use throughout the day (interval meter) and be on an eligible network tariff. Your electricity retailer can advise you whether you are eligible for a time-of-use tariff.
Large users (500 MWh to 750 MWh)
Reducing subsidies for large users aligns the Territory with other jurisdictions. These customers are generally better placed to invest in energy-efficiency technologies or adjust their energy use.
The new tariff for customers using between 500 MWh and 750 MWh per year is 5% higher than the standard commercial tariff. Once indexation is applied, these customers will pay about 8% more for electricity from 1 July 2025.
Even with this increase, large users will continue to receive a CSO subsidy, as the tariff remains below the cost of supply.
High voltage customers
High voltage customers are usually large commercial and industrial operations. They may have a primary connection using more than 750 MWh per year, with smaller secondary sites using less.
Around 30 high-voltage customers will see higher fixed daily charges that align with Power and Water Corporation’s network charges. Their consumption charges will remain protected under the pricing order.
Power and Water Corporation increased its fixed daily network charges for 6 customers to about $110 per day in 2023-24. Under the current pricing order, these customers pay about $0.80 per day, creating a significant gap between costs and revenue.
Higher fixed daily charges for high-voltage customers will be introduced from 1 July 2026.
Government customers
NT and Commonwealth Government customers will move to cost-reflective tariffs from 1 July 2025.
Local government councils will move to cost-reflective pricing from 1 July 2026.
Government customers, including NT and Commonwealth Government agencies, and local councils will need to procure electricity through an electricity retailer on commercial terms.
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