Blackouts becoming a norm: Ain

The National Main Stories

THE reliability of power systems in the country has always been an issue and frequent power interruptions and total system outages (blackouts) have become a norm and daily occurrence, a State agency official says.
Independent Consumer and Competition Commission (ICCC) commissioner and chief executive officer Paulus Ain said continuous power outages had impacted customers and businesses alike.
He said the problems affecting PNG Power Ltd’s (PPL’s) reliable power services could not be rectified by PPL alone.
Ain added that the problems affecting PPL needed a collaborative and coordinated effort from all key stakeholders.
He said the continuous power problems were amplified by:

  • A TARIFF freeze since the second quarter of 2013;
  • OUTSTANDING electricity bills, in particular, owed by government institutions; and,
  • ELECTRICITY theft.

Ain said these were unfortunate facts and in no way a justification for PPL’s poor performance particularly with regards in ensuring reliable service.
Ain raised these points to inform all stakeholders and consumers that some issues in providing reliable electricity services were sometimes beyond PPL’s control and required a holistic and collaborative effort by all key stakeholders.
According to the commission, in order to address these issues, some of the immediate actions needed include:

  • PRIORITISING investment to transmission network infrastructure and key distribution networks;
  • ALLOWING the commission to continue to perform the economic regulatory functions under the existing ICCC Act and the Electricity Act (amended);
  • TAKING disciplinary actions against the PPL workers that do illegal connections; and,
  • THE Government to fund PPL’s outstanding financial obligations with independent power providers.
    The ICCC, prior to the establishment of the National Energy Authority Act 2020, proceeded to undertake some changes within the existing regulatory framework to address the aforementioned issues.

These include:

  • SHORT-TERM measures – The ICCC worked with PPL and other relevant stakeholders during the electricity regulatory contract review to determine appropriate service standards requirements and a price path for PPL to cover its capital and operational expenditures and make reasonable return-on its investments.
  • MEDIUM-TERM measures – One of the main contributing factors of the huge debt (K650 million) owed by PPL to several independent power producers and service providers relates to the power purchase agreements with several independent power producers.