High court backs state on power generation

 THE Supreme Court has handed down an important ruling in favour of the government in a case concerning distribution of electricity in Port Moresby through the Kanudi power plant.

The decision, delivered on July 4, includes the government’s right to determine the material used in the generation of power, particularly through generators which are managed by private enterprise and sold to the public at large.  

The regulation prohibits absolutely the importation of a petroleum product or heavy fuel oil, which has sulphur content in excess of the maximum prescribed standards under the regulation.

The decision is also concerned with the authority of the government to make subordinate legislation that affects rules to protect public interest to regulate prices.  

The court ordered to uphold the government’s appeal and made further orders that the legal costs of the state be paid by Hanjung Power Ltd.

The appeal sought to challenge the decision of the National Court made on Sept 18, 2009 in proceedings OS (JR) 123 of 2009 – Hanjung Power Ltd v The State. 

In that case, the court had struck down the Customs (Prohibited Imports – Certain Petroleum Products) Regulation, 2008 (No.7 of 2008) on the grounds that the NEC failed to accord Hanjung Power natural justice, failed to give reasons for its decision and made a regulation that is unreasonable and which contravened Section 41 of the Constitution.

Hanjung Power operates a power plant at Kanudi, outside of Port Moresby, which supplies about a third of the electricity used by Port Moresby residents and businesses.