Power reclassification will trim industrial pool, says CEO

PNG Power Limited’s (PPL) move to reclassifying its industrial current will trim down the actual industrial pool in the country from 94 to 51 clients, an official says.
Chief commercial officer Dr Nigel Booker said the industrial classification of 200 kVA (kilo-volt-amperes) was set about 40 years ago, to attract investors into the country.
Booker said because of the technological expansion in the industry since, a review was due to properly identify industrial clients and treat them with the respect they deserve.
“What was 200kVA 40 years ago from the industry is now used for hair salons, shops, burger joints which obviously are not industrial customers,” he explained.
“Industrial customers are those who require industrial loads, big cables, big lines. We are talking the likes of Coca Cola, SP Brewery, Dulux.”
Booker said a global scan of what was classed as industrial tariff landed them at 750KVA.
“Raising it from 250kVA to 750kVA now gives us a proper industrial tariff,” he said.
“We currently have 94 industrial customers but by raising it, we will lose 43 customers who will go from industrial to commercial.
“That sees a revenue lift of about K11 million. But it is not about therevenue lift.
“It is about providing proper industries with industrial tariff so they get the dedicated lines, feeders, and are looked after in a way.”
He said as a nation, “we cannot afford to allow our industry to fail”.
“So we must prioritize them. It’s reclassifying what our industrial clients are, then treating them with the respect they deserve and then taking those other industrial clients, pooling them with our commercial clients and treating them with the respect that they deserve.”