PNG Power Limited today released a statement announcing the commencement of load shedding exercises in the National Capital District due to low generation of electricity.
The load shedding commenced when one of PNG Power’s Independent Power Producers, Dirio Gas & Power Company Limited decided to shut down its electricity supply to Port Moresby city.
The company claims, PNG Power Limited owes them K240 million of outstanding electricity bills.
While both companies are in discussions to resolve this issue, PNG Power Limited Board Chairman McRonald Nale highlighted global economic challenges coupled with unpaid bills and aging infrastructure as major challenges placing this State Owned Enterprise in such a position.
Nale said adverse global economic situations and market fluctuations have also impacted our costs and are making it more difficult for PPL to operate efficiently.
“These conditions include, a shortage of Foreign Exchange within PNG, an increased fuel costs partly driven by global uncertainties.
“Unpaid electricity bills and unfunded community service obligations continue to drain PPL’s financial resources.
“PPL requires immediate additional funding so that it can reduce it’s outstanding debt and modernize its infrastructure,” Nale stressed.
Despite all these challenges, Nale said PPL is working hard to ensure there is limited power disrupted to all businesses and residents in Port Moresby.
Residents are advised that there will be a three to four hour interval of power disruption at this stage as talks with Dirio continue.
Dirio’s engagement to supply electricity into the city is under PPL’s Independent Power Producers (IPPs) partnership.
Nale said they appreciate the contributions of many IPPs as important stakeholders as they play a very crucial role in generating electricity for PPL’s major grids.
“PPL will continue its partnership with IPP’s on terms and conditions that are fair and equitable to both parties,” Nale said.
Related Article: https://insidepng.com/dirio-suspends-supply-of-electricity/