New power producers told to follow process

By CLARISSA MOI
PAPUA New Guinea’s consumer watchdog is appealing to potential power producers to follow the proper procedures before generating and selling power.
Paulus Ain, commissioner and chief executive of Independent Consumer and Competition Commission (ICCC) said many independent power producers were by-passing the ICCC which gives licences to power producers through an application process.
“Our request is for every player to go through the normal vetting and approval process set out by the ICCC under the third party access code.” Ain said.
The third party access code is the regulatory instrument that ICCC has developed to help address the arrangement between the wholesale purchasing that PNG Power Ltd makes from independent power producers.
“That code provides the overarching regulatory framework for any third party who intends to sell power across PNG Power Ltd network,” he said.
“Our main concern is for the operators who are operating without a licence. Producing and selling electricity without a licence is illegal,” Ain said.
He said that it is a mandatory requirement that the third party access code for power purchase reference pass the prices based on the least-cost generation options.
“The third party access code assists PNG Power Ltd and independent power producers to go through this process.
“So the tariff agreed between the two parties is a least-cost form of generation,” he said.