PPL is aware of emerging competitors: Economist


PNG Power Limited (PPL) is aware of emerging competitors in the electricity industry which it operates in as a monopoly, according to its senior economist Stanley Kewa.
Kewa told the Independent Consumer Competition Commission-organised workshop on the electricity industry last week that its four electricity licenses were for generation, transmission, distribution and retail.
He said PNG Power became a regulated entity in 2002 “in which its service standards and prices are regulated by Independent Consumer Competition Commission-through the electricity regulatory contract”.
“This was through the four licenses that were issued to PPL in 2002,” Kewa said.
“Under the retail license, we have a limited monopoly protection.
“Prior to the company becoming established and regulated, we were established in Port Moresby and all the other centres in the country through Elcom.
“So we were given that right to sell power within the 10 kilometre radius of our existing lines. “And that is the monopoly that we have.
“I believe it may expire shortly with new participants coming into the retail sector of power.
“Any other sector or service area is open for competition.”
He said PNG Power was currently selling power to more than 130,000 customers including domestic and industrial zone supply, street lighting and “special type of customers which we have different contracts with”.

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