High power rates are ‘cardinal sin’

PRIME Minister James Marape says it is a “cardinal sin” that Papua New Guinea has very-high electricity rates.
He said the Government was addressing this by way of setting up the National Energy Authority to be the regulator of energy in the country and PNG Power Ltd as an energy service provider.
Marape said this on Wednesday when addressing a workshop on innovation in the electricity sector focusing on renewable energies, organised by the International Finance Corporation (IFC) of the World Bank.
He said despite the fact that PNG had an abundance of sources of clean and green energy, it was ironic that it could not provide its people with cheap electricity.
“At the moment, sadly, it (cheap electricity) is not so. We have one of the highest tariff structures in our country,” Marape said.
“It’s morally wrong, a cardinal sin, for us to maintain this high cost structure going forward in a land that is prevalent with many clean energy sources for us to tap into.
“This is wrong and is something that we are working to correct at the very earliest.
“We have clearly identified impediments to arrive at lower-cost electricity, that is sourced from cleaner sources.”
Marape said PNG would transition into using gas as a cleaner and greener source of energy, and into the future, generate energy from hydro, geo-thermal, solar and various other natural sources.
“Today, for the first time, by deliberate intervention, we have established the National Energy Authority.
“PNG Power Ltd is reduced to just a company, amongst, hopefully, many companies in the power-generation space,” he said.
“Whilst they are the only State-owned power company, we realise their inadequacies.
“It is about time we step up the game.
“We have a mission to deliver electricity to 70 per cent of our people by 2030 .
“PNG Power alone cannot be a regulator, and deliverer, of power to our people.
“We have now established a regulator, at arm’s length from power companies, and PNG Power can be amongst many power companies in our country.”