PNG Power assures it compliance with electricity code

PNG Power Ltd says it has always complied with the third party access code when engaging independent power producers to supply electricity onto its electricity systems.
In a statement yesterday, acting chief executive Douglas Mageo said: “PNG Power ensures that independent power producers engaged to supply power to our customers provide cheap and reliable power supply before any power purchase agreement is signed with PNG Power.”
He made this comment in light of the Independent Consumer and Competition Commission statement on the issue of licensing of electrical power producers in its endeavour to regulate the electricity industry.
“The Government’s policy on promoting the use of public/private partnerships, where the private sector’s packaging of design, construction, financing, operation and maintenance of a generation proposal is commercially and technically viable to PNG Power and that benefit can be passed to our customers in the form of cheaper and more reliable power,” Mageo said.
“PNG Power enters into a power purchase agreement with the independent power producer in compliance with the third party access code and the grid code.
“PNG Power’s operation is also subject to a range of legislation including the Electricity Industry Act 2002, the Independent Consumer and Competition Commission Act and most recently, the third party access code and grid code (implemented in 2014).
“The three grids are currently covered under the third party access code. The grid code are Port Moresby, Ramu and Gazelle.
“PNG Power submitted its last statement of power purchase reference price for each of the grids to ICCC in 2014.
“The next development plan is still under review and once it is finalised and approved by the board, this will pave way for the statement of power purchase reference price to be updated accordingly this year.”