PNG Minister Orders Tougher Action against Power Thieves

Power theft and unpaid electricity accounts have come under renewed scrutiny in PNG, with Minister Richard Maru directing PNG Power Limited to take stronger action against illegal connections and defaulters.

The order comes as the Government pushes ahead with its six-month plan to stabilise PNG Power, improve revenue collection and restore the utility’s capacity to provide reliable electricity at lower cost.

Mr Maru said electricity theft was contributing heavily to PNG Power’s losses, with thieves and defaulters accounting for more than 25 per cent of the company’s electricity losses.

He directed management to carry out nationwide meter audits and make greater use of detection technology to uncover illegal connections and other forms of power theft.

The Minister’s decision follows a recent PNG Power report which identified extensive non-technical losses and persistent electricity theft in several parts of the country.

Mt Hagen and Kundiawa have now been selected for a trial aimed at changing the way electricity revenue is collected.

Under the directive, PNG Power will immediately begin arrangements to outsource revenue collection in the two centres, with the performance of the trial to determine whether the approach should be extended elsewhere.

“The continued revenue leakage in these centres is unacceptable and requires decisive action from PPL,” Mr Maru said.

He said the exercise was intended to improve customer compliance and reduce losses linked to electricity theft, particularly in the two high-risk centres on the Ramu Grid.

“This directive is issued to support PPL’s efforts to stabilise revenue performance and restore operational integrity in Mt. Hagen and Kundiawa in Ramu Grid,” he said.

The financial problems facing PNG Power were also discussed during a meeting between Mr Maru and the company’s five major creditors, the Independent Power Producers.

It was the first consultative roundtable involving the creditors and focused on how PNG Power can address debts exceeding K1.2 billion.

Additional discussions involving the creditors and Kumul Consolidated Holdings are scheduled to continue next week.

Mr Maru said the preferred solution was a Scheme of Arrangement that would provide a pathway for PNG Power to settle its obligations while giving both the Government and creditors an agreed framework.

“Our priority is to settle all our creditors under a Scheme of Arrangement that is acceptable to both the Government and the creditors and supervised by the Courts once agreed,” he said.

The Minister also acknowledged the K100 million allocation provided in the supplementary budget to help PNG Power reduce its long-standing debts.

He said the planned sale of all “B” and “C” Centres could provide another source of funds for debt repayment.

“I thank the Marape-Rosso Government for providing K100 million in the supplementary budget to assist PPL retire some of its long-term debts. I am confident that with the sale of all ‘B’ and ‘C’ Centres, PPL will generate additional revenue to assist retire its debts,” said Minister Maru.

Government agencies and departments will also be required to move onto Advanced Metering Infrastructure under a separate directive, with the aim of stopping the build-up of unpaid government electricity bills.