NiuPower to reduce fuel cost

PNG Power Ltd acting chief executive officer Douglas Mageo says costs on fuel can be reduced when the gas-powered NiuPower station starts operating.
Mageo told The National that the station is waiting for the Independent Consumer Competition Commission (ICCC) to issue a licence to begin operations.
“The 57.78 megawatt NiuPower station was completed and cleared in April 2019 and ready to generate,” Mageo said. “But we are still awaiting the generation license to be provided.
“We were anticipating a turnaround of the company with the fuel switch but since there is delay with the issuance of the generation license, we are now taking the necessary steps to load shed and reduce fuel expense.
“Fuel is the biggest cost to us, whether it be our own diesel or pass-through cost from our independent power producers.
“The load shedding exercise is to help us reduce the cost of fuel and manage our operating costs given that our biggest customer, the Government, still owes us K44 million and is not keeping up with its payment plans.
“We are now working closely with our parent entity, Kumul Consolidated Holdings (KCH) and the Government to reduce the outstanding payments to meet our obligations with creditors ensuring stable power supply throughout our footprint.
“Our plan to reduce fuel costs and electricity tariff is by fixing and maximising the running of our existing hydro plants.”
NiuPower chief executive officer Richard Robinson told The National: “We have been advised by the ICCC that the issue of the generation licence is imminent but the ongoing and extensive delay has been a disappointment to both NiuPower and PPL. “PPL are on record as saying that having the NiuPower Port Moresby Power Station operational and dispatching commercially saves them, and thus the nation, K100 million per year and it is unfortunate that these savings have not yet commenced.
“The power station would be expected to commence commercial dispatch of power within hours of the licence being awarded.”