PPL aims to reduce costs

National

By CLARISSA MOI
PNG Power Ltd will continue to work with the independent power producers (IPPs) to try reduce electricity cost for consumers, managing director Flagon Bekker says.
Bekker was responding to queries from The National with regards to the new power project, Dirio Gas and Power Company, which was commissioned yesterday and would supply Port Moresby with 45 megawatts of power using natural gas from the PNG LNG Project.
“While we are excited about the potential in this project, we need to continue to work with all our IPP partners to (reduce) the cost to the end consumer over time,” Bekker.
Bekker noted that PNG Power had different contracts with different IPPs – each negotiated separately in the past, each with its own specific business cases.
“We are excited that this will be the first fully nationally-owned independent power producer in PNG.
“It will add to the mix on the Pom (Port Moresby) grid and bring more competition in the sector.
“We will work with them – as we do with all our IPP partners – to make this investment a success throughout its life-cycle.”
Dirio is owned by PNG LNG Project landowners in Hela, Southern Highlands, Gulf, Western and Central and the respective provincial governments are partners in the project.
The company aims to deliver cheaper power.
The reduced price could lead to a reduction in tariff for electricity users.