Profitability key: Official

By PETER ESILA
GETTING PNG Power back to profitability is key to solving the blackout issues in Port Moresby and the country – with the Niu Power transmission line to be completed in two months’ time, an official says.
PNG Power acting chief executive officer Douglas Mageo said the switch from diesel to gas (Niu Power) or hydro to generate electricity was cost-saving.
“We are still chasing up with Finance (Department) to release some payment for the K50 million that they owe us so we can settle our suppliers,” Mageo told The National yesterday.
“Puma Energy has stopped supplying fuel to PNG Power because its account with Puma went over the credit limit.
“It normally comes when we are not able to pay some of our arrears before we move to the new month.”
Mageo said there was nothing much PNG Power could do but to conduct load shedding, which was the main reason behind the constant blackout experienced in Port Moresby in the last couple of weeks.
“Once we have Port Moresby completely on hydro and gas, we will be cash-flow positive and we expect this to happen in two months after we complete the transmission line and shut off all our diesel and heavy fuel oil stations in Port Moresby,” he said.
“We would like to thank our suppliers who have shared the financial burden with us, customers with whom we share the blackouts and those in authority that have assisted us in getting the approval to make the gas switch possible.”
The Niu power station was commissioned in April and granted the generation licence by the Independent Consumer and Competition Commission on Oct 8.
“It is now awaiting gas to be supplied for its operation.”