A panel reviewing the N.W.T.'s electricity rates is proposing a revised structure that groups the territory's communities into three zones.

In their findings, released Thursday, the review team of Gerry Forrest, Doug Matthews and Mark Cleveland suggested that communities be grouped by:

Power rates in the Northwest Territories are currently determined by a complex system that was developed in the early 1990s, with prices based on "community-level costs," according to the report.

The panel said the changes would result in lower energy prices for diesel-powered communities and "modest increases" for communities that are on hydro.

The report also includes suggestions for improving how power is delivered, as well as determining how much of a subsidy customers should get.

The panel's suggestions are based on consultations with more than 350 northerners over the last year.

The panel is calling for many of its proposed changes to be implemented immediately, but the territorial government has yet to say how it plans to proceed with the report.