The Independent Consumer and Competition Commission (ICCC) recently emphasized in a media statement that it still remains the economic regulator of the electricity supply industry in PNG.
The statement was directed to key government Ddepartments, statutory agencies, PNG Power Limited (PPL), Independent Power Producers (‘IPP), development partners and donors, the private business community and investors, and relevant stakeholders.
The ICCC highlighted the principal legislation for the electricity supply industry is the Electricity Industry Act Chapter 78 consolidated to No.10 of 2002 (EIA Ch.78)). It declares the regulatory oversight of the electricity industry for purposes of the Independent Consumer and Competition Commission Act 2002 (the ICCC Act). The EIA Ch.78 has never been amended since 2002.
In 2021, the Department of Petroleum (DPE) sponsored enactment of the Electricity Industry (Amendment) Act 2021 (EIAA 2021). The purpose of the EIAA 2021 legislation was to amend the Electricity Industry Act of 2002 (EIA 2002); a legislation that is non-existent which is seeking to repeal all functions and powers of the Independent Consumer and Competition Commission (which are in effect contained in the Electricity Industry Act Chapter 78 consolidated to No.10 of 2002 (EIA Ch.78)), and transfer these powers and functions to the new National Energy Authority (NEA).
ICCC said DPE undertook this amendment of the EIAA 2021 with minimal consultations with key stakeholders including the ICCC as the incumbent regulator. The ICCC at its own volition and concern for the industry, raised a few concerns on numerous occasions, of the potential ramifications on the electricity supply industry and the need for proper and wider consultation to be undertaken with relevant stakeholders. The ICCC nor any other industry stakeholder was given the opportunity to review the proposed legislative amendments in detail and to provide appropriate feedback prior to the EIAA Bill being passed by the Parliament in April, 2021.
The ICCC is concerned for the lack of consultation and dialogue shown by DPE in the course of the amendment process, especially when these changes would affect the legal regulatory framework of the electricity supply industry, the effectiveness of the supply of electricity services, and the functions of sister government agencies mandated under existing legislations.
ICCC stated that legal interpretation has been sought on the changes to the relevant legislation from the Office of the First Legislative Counsel who advised that the EIA Amendment Act of 2021 making reference to the Electricity Industry Act 2002 (‘EIA Act 2002’) as a non-existent legislation.
The ICCC also stated that as an organization, it shares the views expressed by the First Legislative Counsel and therefore will continue to regulate the electricity supply industry in PNG through the Electricity Industry Act Chapter 78.
ICCC concluded by stating that all donor partners, key stakeholders and the general public are hereby informed that any action(s) or decision(s) by NEA in the regulatory space will be deemed illegal. As well as all stakeholders are now required to directly liaise with the ICCC on all electricity regulatory matters going forward.