Port of Darwin: Too much discretion for the regulator?

EXECUTIVE SUMMARY

The proposed regulatory framework for the Port of Darwin is set out in the Ports Management Bill 2014 (NT). In principle the draft Bill draws on approaches adopted in Victoria and South Australia. In doing so, it vests a significant amount of discretion in the Northern Territory Utilities Commission, a notionally independent regulator¹ to make determinations about the appropriate level of regulation and potentially to set up front charges and terms and conditions. To that extent, it has the potential to be significantly more intrusive than the approach adopted in New South Wales in respect of the Port of Botany (for example), although it is not clear from the draft Bill whether price regulation is intended to displace commercial agreements.