PNG Power Ltd has not been charging its customers any increase in electricity bills since January 2014.
The tariff remains the same at an average of about 0.78 Toea per kilo watt hour even though the fuel price has escalated and is now having a great impact on the ability to maintain the price at the current level.
The national government and Independent Public Business Corporation (IPBC) have subsidized the increase for the first half of the year by K10 million and the next half by K10 million.
The total of K20 million given to PPL has helped PPL however, the constant increase in fuel price is a big challenge in terms of the ability to absorb this cost.
PPL thanks the government and IPBC for the support that will not see PPL passing the increased cost to its customers.
The two gas turbines purchased for PPL by the government will only be used for peaking hours and emergency.
They will be used for load riding given the peaks in the system, and on emergency basis when there are generation capacity issues.
On average, each generator will operate for about 3 hours per day to cover for any shortfall, and would cost on average around K350, 000 on fuel to run it for this short hours given that Port Moresby fuel price is at K3.38 per litre.
The new generators will be installed and ready by September 2014.
Chief Executive Officer