ELECTRICITY tariff in PNG will go up beginning Monday.
PNG Power CEO Patrick Mara announced yesterday that the tariff will increase by 9.16%.
He said this increase is the balance of the 2007 maximum average price (MAP) tariff of 11.93% approved by the price regulator, the Independent Consumer and Competition Commission (ICCC).
PNG Power is raising the rates despite refusal by the ICCC to give its approval.
A heated exchange over this issue last week led to Mr Mara to accuse ICCC officials of seeking favours before considering their submission, a charge ICCC denied.
ICCC clarified yesterday that the latest tariff increase was endorsed by ICCC in Dec 2006 for application last year.
ICCC yesterday maintained that 2008’s tariff increase submission made by PNG Power Limited (PPL) in December for application this year was not approved because it was submitted late.
Stanley Alphonse, ICCC’s executive manager for Crises & Regulatory Affairs, said the ICCC Board rejected PPL’s request for tariff increase for this year, but added that it was PPL’s prerogative to implement the remaining 9.16% this year, which it did not apply last year.
Mr Alphonse said ICCC had no objection to the increase “as long as the percentage did not exceed the total remaining 9.16 %.”
Mr Mara said PNG Power implemented only 2.56% of the total 11.93% last Jan 1 and this 9.16% would off-set the difference.
The increment however, is nearly .21% less than the total MAP approved, according to figures provided by PNG Power in a statement released yesterday.
“Rather than applying the full 11.93% last year, PNG Power took a business decision to apply only part of the increase,” Mr Mara said.
He said with the increase in fuel costs and other operational costs over the last 12 months has forced them to raise the power rates.
“PPL notes the fuel prices have increased by over 17% last year, including the more recent increases of over 12% and that this increase is not reflected in the tariffs that will apply in 2008,” Mr Mara said.