The Northern Territory Government will invest $51 million in 2025–26 to subsidise power prices as it implements its three-stage electricity pricing reforms.
Electricity prices in the Northern Territory are regulated by the Northern Territory Government through a pricing order made by the Treasurer under the Electricity Reform Act 2000.
The Territory Government also provides subsidised electricity to households and businesses through the electricity uniform tariff community service obligation (CSO), which meets the gap between regulated electricity tariffs paid by customers and the cost to supply electricity to customers.
While electricity tariffs have previously been linked to inflation, in March 2025, the Northern Territory Government announced that it would cap the increase at three per cent.
In 2025, the Territory Government is set to invest $192 million – including a $51 million boost in the 2025–26 budget – to subsidise electricity costs, as a new pricing structure rolls out from 1 July 2025.
According to the Northern Territory Government, the Territory continues to enjoy some of the lowest electricity prices in the country, thanks to these subsidies.
However, the electricity uniform tariff CSO has grown substantially over time as the cost of electricity supply has increased faster than tariffs.
The Territory Government is now implementing changes to the regulated electricity tariffs under the Electricity Pricing Order, aiming to ensure the electricity uniform tariff CSO remains financially sustainable and targeted to customers with the greatest need.
The electricity reforms will roll out in three stages:
Phase 1
From 1 July 2025
- A new tariff will apply for large commercial customers using between 500–750MWh per year
- Northern Territory and Federal Government agencies will move to full-cost pricing
- The solar feed-in tariff will double to 18.66c/kWh for energy exported to the grid between 3pm and 9pm
Phase 2
From 1 January 2026
Households will move to a tiered pricing system:
- The first 55kWh per day will be charged at the normal household rate
- Usage above that will be charged at a higher rate, equal to the rate applied to small businesses
- New time-of-use plans will be available for households and small businesses to give more choice and control over energy costs
Phase 3
From 1 July 2026
- Daily charges for high voltage customers will move to full cost pricing
- Local government councils will also move to cost-reflective tariffs
Northern Territory Treasurer, Bill Yan, said the government remains focused on protecting Territorians from rising energy costs.
“We want the lowest possible prices for households while maintaining a reliable network,” Mr Yan said.
“These reforms make sure our electricity subsidy stays sustainable, so we can keep supporting households, small businesses and regional communities across the Territory.”
Mr Yan said the government is acting to protect this CSO well into the future.
“The CSO keeps power affordable across the Territory. Without it, an average household in Darwin would be paying nearly 50 per cent more – and even more in regional and remote areas,” he said.
“These reforms are about long-term sustainability, keeping costs low where it matters most, while ensuring we can continue to subsidise electricity for Territorians in a fair and responsible way.”
