Kumul Consolidated Holdings, the State entity has announced that it has released K20 million to the State-owned power company PNG Power for independent power provider (IPP) creditor repayments.
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.
“It is imperative that all power bills are settled in a timely manner, so that they (PNG Power) can meet creditor payments. The majority of homes and businesses are connected to the Esi-pay system, which makes cash flow easy to manage,” said KCH Acting Managing Director, David Kavanamur.
He said similarly, many residences and businesses are on postpaid meters and they are assisting PNG Power with a conversion program to introduce smarter metering and pre-paid Esi-Pay meters.
The smart meter systems and more community awareness programs will assist PNG Power to reduce the amount of generated power that is lost to illegal connections and theft.
“Nearly a third of all power generated is stolen. This is major cost to PNG Power and is not sustainable or acceptable,” said Kavanamur.
He indicated that the grid stabilisation projects have commenced and will ramp up with funding allocated toward network infrastructure rehabilitation and grid continuity.
A further K11 million has been invested in PNG Power projects in Port Moresby for grid stabilisation. Engineers and contractors are carrying out several activities that will build power reliability.
“This complements existing rehabilitation, connection and expansion programs with donor partners.
“KCH is working closely with PNG Power teams to review longer term business transformation and continuity. This includes investing in the digitalisation of internal and external systems, training, and skills development, strengthening commercial and financial modelling, and reinvigorating the company culture.
“This is all contributing toward a new business model for PNG Power that is fit for purpose, effective and sustainable."
Kavanamur said PNG Power will once again become a place where people are proud to come to work and contribute to the growth of our nation.