Bekker: Single buyer concept will ensure better competition

The National National

A SINGLE buyer concept to ensure effective power generation and supply in the country will enable better competition, says PNG Power Ltd managing director Flagon Bekker.
Energy Minister Saki Soloma said during the PNG Power partnership workshop in Port Moresby yesterday that the Government’s decision to adopt the single buyer concept by PNG Power Ltd must be based on a careful analysis of matters such as:

  • THE size of the market;
  • THE capacity of the mandated entity to perform the role as a single buyer;
  • RESPONSIBILITIES for enabling the success of the new market concept, including solutions to legacy issues such as outstanding liabilities; and,
  • FUTURE development of the power market, among other markets.

“A comprehensive study must be undertaken to identify all issues likely to contribute to the success or failure of the single buyer concept,” he said.
“The experience in PNG, if an entity playing the roles of a regulator and a market player at the same time, has not been successful.
“So the option of NEA playing the role of a single buyer will amount to repeating what has not worked in the past.
“I think it is important that we move one step at a time.
“The first step is for relevant government departments and SOEs to support the newly-established NEA to be a strong driver and regulator of the energy sector. The next stage will be market reforms.”
A strong, transparent and a accountable regulator is much needed by the country to bring 100 per cent electricity access to all households in PNG and deliver much-needed power to commercialise and industrial consumers.