MARCH 8 2022
PNG Power Ltd (PPL) Chairman Moses Maladina has weighed in on recent unfair criticism levelled at the company’s operations.
“Criticism of our current service level may be appropriate, but misinformed allegations are not acceptable. Stop politicising the issues at PNG Power Ltd,” he said.
“The position does not reflect the dedication of the hard-working men and women. After months of restructuring, we are close to achieving a working environment of a company that must address years of neglect, poor decision-making, and a lack of strategic direction.”
The Chairman didn’t pull any punches when responding to unfair criticism of the company.
“This is a billion-kina company with the pre-eminent position of supplying power to citizens’ homes and businesses across PNG. This company has had to carry years of poor decisions such as entering contracts with independent power providers (IPPs) on unfavourable terms, “ he said.
“In some circumstances we are contractually obliged to buy power from IPPs at a higher price than we are permitted to sell – these are the contracts that Mr. Burbidge represents.
“PNG Power Ltd has established payment terms to meet outstanding amounts totalling K250 million to all IPPs.”
Chairman Maladina said: “Cashflow is key in our business. We are balancing our collections, against expenditure. We have regular open discussion with all our creditors.
“PNG Power Ltd has over US$300 million in projects being progressed to improve the generation, transmission, and distribution of power. We are working with our shareholder, Kumul Consolidated Holdings, and our bilateral and multilateral partners under the PNG Electrification
Partnership. Our challenges are the ageing infrastructure and a lack of consistent adequate maintenance over the last several years.
“PNG Power has over the last 12 months improved service reliability, contrary to statements in the press. Compared to 2018-2019, total planned and unplanned interruptions have reduced by 26 per cent in Port Moresby. Over the last 12 months, total System Average Interruption Duration Index has reduced by more than half.”
Chairman Maladina conceded that “the current situation is still far from acceptable”.
“We are focusing on reducing theft and non-technical loss. PNG Power currently loses 28 per cent of the power generated, due to illegal connections. Our engineers and retail staff are attacked if they attempt to disconnect these criminals,” said the Chairman.
Chairman Maladina remained optimistic that despite these challenges, “with the support of our shareholder, our partners and suppliers, our valued customers and our dedicated employees, PNG Power can be structured to not only face these challenges but overcome them”.
“Despite all of the negative reports, there is a lot of positive news from PNG Power Ltd also, “ he said.