MICAH : STATE OF EMERGENCY DECLARED ON PNG POWER WAY FORWARD

The State Owned Enterprise and Investments Minister Ben Micah is adamant, a State of Emergency declared on PNG Power is the way forward in addressing power problems in the country.

Ben Micah said the company's operation have been affected because it ran into a cash flow problem, and an S-O-E will solve this.

"This is not a Sate of Emergency that will lead us into bigger problems.

I am not one that works on failure, I have calculated and strategies the whole approach to the exercise. At the end of 60 days I must report back to cabinet positives steps that have been taken to address the issues and positive that have been taken for the company to work together with other other stake holders in the private sector other government agencies and international organizations to ensure that we address the overall requirements of electricity for the people of our country"

The Sate Owned Enterprise and Investment has announced a state of Emergency for PNG Power Limited, for a two months period, and to cost four million kina.

This is because PNG Power is currently facing a serious negative cash flow situation due to lack of tariff increase and also as a result of non payment of bills by consumers.

Mr Micah in the announcement said as a consequence, the company is unable to continue to maintain consistent and reliable services nationwide.

The minister said his announcement is in accordance with section 3 and 4 of the Essential Services Act of 2002:

"The national executive council made the decision to invoke section 3 and 4 of the Essential Services Act and to declare electricity services under a state of emergency. .....the provision of electricity will now come under the control of the minister responsible which in this case is myself .Under the emergency powers which cabinet proved which was gazetted on the 22nd of December under this gazettal notice it became effective.I make this announcement that under this emergency powers, I have assumed all powers in relation to electricity services and powers regulations and related services throughout the country from PNG Power Board and management, IPBC, NEC as per the gazette.The emergency laws has given me the authority to make decisions for the sector".

Mr Micah has also appointed retired Captain Tom Alois Urr as the controller of the State of Emergency and Teika Tefatu as Deputy Controller, both will report directly to the Minister.

An advisory committee is also being formed to oversee the State of Emergency, chaired by the Secretary for the Independent Public Business Corporation Dr Clement Waine, with members comprising the Chairmen and CEO's of state owned enterprises.