PNG Power Ltd (PPL)

The financial sustainability of PPL is a concern due to factors such as high operational costs, low revenue collection rates, and inadequate funding for infrastructure upgrades and maintenance. These financial challenges impact the company’s ability to expand its services and improve reliability.

These factors were stated during the PPL Amnesty Campaign which is being run throughout various provinces. The Amnesty Campaign comes under the US Agency International Development’s (USAID), USAID-Papua New Guinea Electrification Partnership (PEP) activity.

Being the provincial capital,  Kerema has suffered from prolonged outages due to its power station breaking down.

PNG Power recognized the need for reliable power supply for local businesses, schools, hospitals, and residents, especially with the pending development of the Papua LNG Project.

The generator has already been installed in Kerema and the PNG Power technical team will commission it in December. This generator will provide power until the start of the construction of a DFAT-supported solar project in 2024.

The newly appointed executives are expected to take on their roles later this August, marking a pivotal step in the transformation of PPL's operations.

Heading the trio of appointments is Mark Greenaway, who will assume the role of Chief Technical Officer (CTO), having amassed a wealth of experience in operational and managerial roles within the energy sector across Australia and the Pacific, Greenaway brings a profound understanding of power industry dynamics.

Power usually goes off after 6am, and gets restored between 8pm and 9pm.

PNG Power Ltd Kavieng Powerhouse said it is under critical generation deficiency, and they have been undertaking load shedding to maintain electricity to essential services since June 1^st.

“Current situation is tense with only one generator (unit) online and is overriding all manual controls.

“As such, the reliability is subjected to the generation capacity.

“We have since then procured all required parts for the other units and are adamant to get one unit back online.

In a statement, PNG Power advised its customers and the general public in Lae and surrounding areas outside of the city that the issue started midday yesterday.

“The fault has been identified to be between Munum IPP Power Station and Taraka Substation and Power Station,” said PPL.

“The fault is affecting the supply of electricity into Lae city from the Munum Power Station and the Ramu Grid.

“Line patrol conducted on Saturday afternoon until the fall of dark has been called off and will continue again at first sunlight.

Minister for International Trade and Investment and Yangoru-Saussia MP, Richard Maru, revealed this during the opening of the new East Sepik Provincial Specialist Hospital in Wewak yesterday.

“We have world-class equipment, very special equipment in this hospital,” he said.

“Continuous blackouts will result in all these equipment being destroyed.

“I know we’ve got generators but that won’t be good if we continue to have blackouts.

“So East Sepik needs a power solution and it needs it now.

KCH have continued to support the open dialogue between PNG Power and its various creditors. 

It is encouraged by the cooperation and will continue to assist when necessary. This includes a review of all power supply contracts to PNG Power with action being taken on power purchase agreements that are found to be illegal.

KCH have also provided capacity backing to the finance and commercial teams at PNG 
Power, to collect monies owed to the company. 

Commissioner Manning’s request follows Nupiri’s press statement refuting the allegation that in August 2018, he did conspire with Blacklock, PPL’s former acting Managing Director, to fabricate her contract of employment, giving effect to her being paid K1.7 million in back pay between December 2017 and August 2019.

The Independent Consumer and Competition Commission (ICCC) listed these reasons after acknowledging the electricity supply issues that are impacting all customer categories and businesses in Lae, Morobe Province.

ICCC Commissioner and Chief Executive Officer, Paulus Ain, said the ICCC noted a few issues that have certainly affected PPL’s performance and thus, the reliability of electricity supply around the country.

Some of these notable issues include:

PNG Power contractor from New Zealand, Vortex, recently successfully completed the project.

Present to commission the power plant was Minister for State Enterprise, Sasindran Muthuvel, West New Britain Governor, Francis Galia Maneke with PNG Power Board Chairman, Peter Nupiri.

The Ru Creek rehabilitation project is part of the town electrification investment program tranche 1, with additional funding by the Asian Development Bank.