Electricity pricing reforms to keep power affordable and fair

25 June 2025

In March 2025, the CLP Government announced it would responsibly increase regulated electricity prices by 3%, effective from 1 July 2025 - benefiting around 85,000 households and small-to-medium businesses.

The Territory Government in 2025 will invest $192 million to subsidise power prices for households and small businesses.

Thanks to this ongoing subsidy, the Northern Territory continues to enjoy some of the lowest electricity prices in the country.

Treasurer Bill Yan said the CLP 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.”

Treasurer Bill Yan said the government is acting to protect this critical support well into the future.

“The Community Service Obligation keeps power affordable across the Territory, without it, an average household in Darwin would be paying nearly 50% more, and even more in regional and remote areas,” Mr Yan said.

“These sensible reforms ensure we can maintain this support where it’s needed most, while keeping costs low for everyday Territorians.”

In 2025–26, the CLP Government will boost funding for the CSO by $51 million, bringing the total investment to $192 million to continue shielding Territorians from rising electricity supply costs.

Electricity Pricing 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 and 750 MWh a year.
• NT and Commonwealth 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 55 kWh 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.

“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,” the Treasurer said.

To find out more information, visit the website. 

Media contact: Elle Arnold - 0408 663 361