Industries need electricity to function, Scovell says


INDUSTRIES cannot function at full capacity without consistent and affordable electrical services, according to PNG Manufacturers Council chief executive officer Chey Scovell.
Scovell was addressing the Safety and Technical Management Plan Workshop on electricity services organised by the Independent Consumer Competition Commission last week.
“Really it’s about what it means to be effective and efficient,” Scovell said
“And that has a big bearing on the manufacturing sector and indeed all sectors in PNG because you have to look at what is happening for competitors.
“When we talk about power to be efficient and effective, and about being able to compete against imported products, it is very frustrating for regulators, bureaucrats and social commentators talking about PNG industry needing to be more efficient, effective and competitive.
“It’s not them that need to be more competitive. But things like power have to allow them a more level playing field.
“So when PNG Power can supply the power to the businesses in PNG for somewhere between 3 cents to 9 cents per kilowatt, that will be okay.
“Australia subsidises their electricity on a whole through indirect and direct subsidies by about 50 per cent, which is consistent with the world average.
“At the moment there has been a lot of talk about generating more power and that’s a bit troubling for industry, because the first thing that we probably need to put more emphasis in is the grid.”

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