PPL shows lack of business planning

Letters

IT has been very significant at the global arena that commercialisation of State-Owned Enterprises (SOEs) such as the PNG Power Limited (PPL) should be leading to increase efficiencies, reduce cost, improve electricity service delivery and better outcomes for the economy in terms of resource allocation and productivity.
This is because commercialisation allows SOE performance to be better measured in terms of results.
Particularly, in the case for PPL, it should typically be adopting an annual budgeting and business planning cycle-all within a medium to long term strategic plan as a ground-rule to take-off.
It should also be adequately capitalised and required to operate on commercial terms.
For example, it should generate an adequate return on investment without any preferential access to markets or finance.
However, the reality is that PPL has been and is not making enough profits and inefficient in service delivery.
This indicates poor business planning or it has not been consistently regulated its plan and conform to its standards for maximising profits.
PPL should not be given monopoly privileges in order to make it profitable.
It should be importantly subject to the discipline of competition and an effective legal and regulatory environment within the boundary of business plan to produce better results.

Fenebe Ibusubu
NCD, Port Moresby