Five year plan underway for PPL

 

Within the last three years we have had growth rates of 3 to 5 percent in Port Moresby and that has imposed a lot of demand on our ability to supply.

It is almost the same for Lae and Madang so the increase in energy demand is being experienced right throughout the country.

The message I am trying to send here is that we as a company need to respond quickly and this business plan is the document that we are feeding our hopes on to be able to meet these demands.

Demands like manufacturing, processing and the impact of the K11b LNG gas project are just some and we need to make sure that the Business Plan captures the impact of the these demands.

This is a curve (see diagram) of what will happen in the next five years.

This is the growth rate that I was mentioning and you will see a gradual increase and by 2010, the curve goes up and that’s the impact of the LNG project and all the associated growth in PNG.

In 2013, our estimate of the total requirement of electricity will be in the vicinity of 12GWh of energy, compared to 2004 with 600GWH.

This is just a figure on the demand but it focuses on the next five years, which is where all our focus is, 2013 generation figures of 600GWH.

Reliability is currently an area of concern to us. We are mandated by ICCC to meet a certain target and for the last three to four years since the regulatory contract kicked in, we have failed to meet those requirements.

At the moment, centres are looking at a target rate of 99.5 that equates to, for a customer in NCD, would be required to have electricity 99.5 times of the year.

If you work that out in terms of hours, that gives you about 72 hours of outages.

For those who live in Moresby, you’ll notice every time we have a total system blackout, the minimum time it takes us to restore is 3 hours.

If we have a few of outages a month, then we haven’t met the reliability benchmark.

As I mentioned we are mandated and as soon as we don’t meet those, the regulatory contract is written in such a way that we start paying rebates to the customers.

In December, we paid penalties for 2005 and 2006.

We will have to crunch the numbers again and look at how much we are going to be paying for 2007 and I guess later on for 2008. Those are the penalties we pay if we do not meet reliability and a lot of the focus has been spent making sure that we address the underlying impediments that are stopping us from achieving the ICCC benchmark.

On average some centres have done very well and have achieved about 99 percent reliability. Other centres are still struggling but that’s the challenge that we need to target all our efforts in achieving reliability.

With our employees, we believe that without adequate resourcing of employees, without the appropriate skills, without the numbers, anything else we put on this strategic plan won’t work.

That is why we put value on our employees and make sure that we resource them adequately in terms of skills and employee benefits.

In 2002 when we were about to be sold, there was mass exodus of people.

The environment that we were entering into (privatised organisation) scared a whole lot of people and when they left, they also took very valuable experiences with them.

Since then, we have put a lot of emphasis in training our next lot of employees that will take this organisation forward.