NiuPower, PPL enhancing revenue collection

Business

NIUPOWER Ltd chief executive officer Michael Uiari says the company is working with PNG Power Ltd to enhance its revenue collection through a Port Moresby grid cash-flow enhancement programme.
Uiari told The National that the programme would address the state’s arrears with PNG Power through a lump sum payment, and increase PNG Power’s revenue by K10 million per week.
“We are working with PNG Power to enhance their revenue collection through an agreed POM grid cash-flow enhancement programme,” Uiari told The National.
The programme has two goals:

  • A LUMP sum payment by the Government to settle the K460 million arrears; and,
  • A K10 million increase in weekly revenue for PNG Power.

The programme incorporates a number of workstreams:

  • ZERO rate Independent Power Producer power generation and sale to PPL, for goods and services tax in lieu of increasing customer tariffs;
  • MIGRATE 70 per cent of the Port Moresby grid customer base to the Easipay prepaid service, including the Government, State enterprises and statutory authorities.
  • MORE aggressively pursue the theft of electricity by businesses and people in informal settlements;
  • ADDRESS grid reliability by developing and delivering a POM grid investment/reliability plan to bring on-grid all the large industrial customers who are currently off grid. These off grid customers currently include Puma Refinery, AES, Motukea Container Terminal, SP Brewery, Paradise Foods and the Coca Cola Bottling Plant; and,
  • DIVEST non-core PNG Power Ltd assets to generate free cash flow.