The newly minted Chief Minister of the Northern Territory, Adam Gillies, has announced that the proposed 30 per cent increases to power prices will be reduced to 20 per cent.

Erstwhile Chief Minister Terry Mills announced a 30 per cent increase to the cost of power to cover increasing supply costs.

The recent announcement by Mr Gilles will also see water prices drop from the original 40 per cent rise to 30 per cent, while sewerage prices will drop 25 per cent to 15 per cent.

The changes will be retrospectively applied to 1 January this year. Power and Water Corporation will credit all account holders who have already paid bills with the old increases.

Mr Giles said that he knew Territorians were struggling but the Northern Territory Government still had to find a path to pay off the debt in a manageable way.

“Territorians have spoken, we as a Government have listened and we have acted,” Mr Giles said.