Offer to sort PPL power issues

NIUPOWER Ltd can offer PNG Power Ltd a long-term offer by unlocking capital required for investment in transmission and distribution infrastructure, an official says.
Niupower chief executive officer Michael Uiari said solutions had been floated with PNG Power, industry peers, Kumul Consolidated Holdings and superannuation institutions.
Uiari said midway last year, they had worked with PNG Power in monthly dispatch planning to ensure it derived a positive margin on its tariff for commercial and industrial customers in Port Moresby.
“This was an initiative by Douglas Mageo at PNG Power which yielded positive results for PNG Power,” he said.
“The challenge is that the surplus is never realised in cash at bank because of the low and slow revenue collection, power theft, revenue lost through power outages and PNG Power’s own cost-base.
“NiuPower can offer a sustainable, long-term solution to PNG Power’s challenges in Port Moresby by unlocking capital required for investment in transmission and distribution infrastructure and restore Rouna hydro to full capacity.”
Uiari said they had been exploring ways for PNG Power to recover customer arrears to alleviate its cash flow issues.
“We are a strong advocate for PNG Power’s independent power producers partners being zero rated for goods and services tax, being given relief from the tariff freeze since 2013 so tariffs more closely reflect its cost base.”