Rise in cost upsets users

 By NATASHA EMECK and ZACHERY PER

THE Government has been urged to relax the rules and allow more electricity suppliers to compete with PNG Power Ltd, a business organisation says.

Port Moresby Chamber of Commerce and Industry chief executive officer David Conn was responding to the increase in electricity cost as announced by PNG Power Ltd.

Conn said although he understood the pressure on cost which led the Independent Consumer and Competition Commission to approve the increase, he still thought it “rolled over” too easily. 

“The ICCC’s role is to protect the consumer and to date, far too many power consumers are getting a raw deal. It is to be hoped that the ICCC warns PPL about its responsibilities under its contract,” Conn said.

Conn said the regulatory contract should be treated with the strictness any other contract with a consumer would command.

He said PPL had failed to meet its obligation to supply reliable clean power on a 24-hour basis.  

“We encourage the government to challenge PPL to meet its responsibilities and look at relaxing legislation to allow new players into the sector and force a bit more competitive on our sole power supplier,” he said. 

“After 50 years, change is long overdue.” 

Consumers in Chimbu and Eastern Highlands yesterday expressed disappointment with the increase.

Kaibar operator in Kundiawa, John Danga said since he started the business in 2010, there had never been a decrease in electricity rate.

“The announcement of the increase is likely to put some of us struggling operators out of business, we are engaged in small to medium enterprise activity and the increase is going to affect us,” Danga said.

Peter Kee, a Chimbu provincial administration employee, said PPL should reduce some of its unprofitable operations to save costs and not pass the burden onto electricity consumers.

Mike John in Goroka said the increase would be a big blow to settlers who had just connected electricity to their homes.