No Tariff increase on Power

PNG Power will freeze  the tariff increase announced recently.  PNG Power  Chief Executive Officer John Tangit, said because  the government has committed K10 million to upgrade ageing infrastructure, PNG Power will not increase tariffs on power.  

The tariff increase of 5.9 percent was supposed to have taken effect as of the 11th of January 2014.

Following the public outcry against the ICCC approval for a 5.9 percent Electricity Tariff Increase, the Minister for State Enterprise and Public Investment Ben Micah issued a directive to the PNG Power Management to stop the tariff increase.

PNG Power Chief Executive Officer John Tangit apologized for the inconvenience caused but it was something that was needed to be done inorder to repair run – down PNG Power Infrastructure.

But with the government’s support of K10 million, all is rest assured that there will be no tariff increase. Infact, PNG Power says this is more than what they would have fetched if the tariff increase was executed.

Mr Tangit said any tariff increases shall not be imposed until and unless in close consultation with the government of the day.

In a letter attentioned to the PNG Power Chief Executive Officer, Minister Micah stated as of January 11, there will be no Electricity tariffs as approved by ICCC in the first quarter of 2014 as it has been the government’s commitment not to pass the cost at the expense of its citizens.

On the issue of constant power outages in Port Moresby, Mr Tangit explained that the recent outages were caused by thunderstorms in the Nation’s Capital.

He further explained that by the end of 2014, PNG Power would have upgraded and refurbished K16 million worth of infrastructure, especially for the Ramu Grid System .

PNG Today / EMTV