Bekker: No increase in tariff for PPL since 2013

By HELEN TARAWA
THE last time PNG Power Limited increased its tariff was in 2013, says managing director Flagon Bekker.
“We haven’t had a tariff increase (in more than seven years), even though we are allowed to,” he said.
“Inflation has been between 4.5 per cent and 6 per cent over that time.
“(So) it has cost PNG Power more than K300 million over the last seven years that we were subsidising the business sector.”
Bekker told The National that PNG Power could have increased the tariff taking into account the inflation but the private sector and business sector had put the prices up with the inflation.
“So they have taken that from the customer base,” he said.
“PPL (did not do) that. (PNG Power has) been subsidising their profits to the degree of K300mil over the last five or six years.
“(PNG Power has not been) keeping step with inflation.”
In response to reports about inflated contracts by PNG Power, Bekker said “where there is no competition, there is a risk”.
“The reason why we need competition is so we have the credibility to say this is a better price,” he said.
“All State-owned entities and a lot of businesses haven’t been done.
“We’ve got power purchase agreements and we cannot refuse them. But we now have to find the solution for them.
“The solution is that the reliability is up.
“This is going to help the independent power producers (IPPs).
“By putting money into the grid you are helping the IPPS and not hurting them.”