PNG Power Limited (PPL) customers will have to pay more for the use of electricity due to the fuel price increase since last month.
Chief executive officer Peter Mara said according to calculations by the PPL board and management, it had assessed that there would be an increase in its operational cost impacts of electricity provision for 2008.
Mr Mara said due to the increase, PPL “is forced to pass on these increase to its customers”, following a modest 2.53% (average) tariff increase this year.
“PPL needs a further 3.16% increase to cover the impacts of operating costs.”
He said that fuel price had gone up since November, by over 5% with the most recent 12% increase in fuel costs over the last couple of weeks.
“This has increased PPL’s fuel costs to over 17%, which will result in its customers footing the increase in surcharge to the tariff of an additional 6%,” he said.