The Electricity Industry
The electricity supply industry was declared under Part IIIB, section 24C of the Electricity Industry Act 2002 (EIA) to be a regulated industry for the purposes of the ICCC Act.
The Commission has among other regulatory functions under the EIA, the licensing functions that permits any person, firm or organisation that intends to operate in the electricity supply industry.
The Commission administers four main Electricity undertaker licences which are:-
- Electricity Generation Licence;
- Electricity Transmission Licence;
- Electricity Distribution Licence; and
- Electricity Retail Licence.
PNG Power Limited
PNG Power Limited (“PNG Power”) is currently the major electricity provider in Papua New Guinea (“PNG”). In 2002, the Minister for Treasury declared PNG Power as a regulated entity and supply and sales of electricity including scheduled and excluded services as regulated services through a national gazette notice under section 32 of the ICCC Act.
PNG Power is also licensed by the Commission under the EI Act to generate, transmit, distribute and sell electricity in PNG. PNG Power also has exclusive right to supply small customers (<10 MW load) within 10km of its network throughout PNG.
Pursuant to ICCC Act and EIA, the Commission is required to issue an Electricity Supply Regulatory Contract (“Regulatory Contract”) to PNG Power. This Regulatory Contract binds PNG Power and the Commission a five year regulatory period.
The supply and sale of electricity including the scheduled and excluded services declared by the Minister for Treasury in 2002 are the subject of the Regulatory Contract under Part III of the ICCC Act.
This Regulatory Contract regulates the prices that PNG Power may charge for the supply and sale of electricity including scheduled and excluded services.
The Commission is currently reviewing the existing Regulatory Contract (2013 – 2017) and will issue a new Regulatory Contract (2018 – 2022) after the completion of the review.
Other Electricity Undertakers
In accordance with section 24D of the EIA, the following electricity undertakers are also licensed by the Commission:
- PNG Forest Products Ltd holds a generation transmission, distribution and retail licences;
- Daewoo Power PNG Ltd holds generation licence;
- Lihir Gold Limited holds a generation, distribution and retail licences;
- Ok Tedi Mining Ltd holds a generation, transmission, distribution and retail licences;
- New Britain Palm Oil Ltd holds a generation licence;
- Posco Daewoo Power Ltd holds a generation licence; and
- ExxonMobil PNG Ltd holds a generation licence.
Third Party Access Code
In 2014, the Commission established a Third Party Access (TPA) Code and a Grid Code for the Electricity Industry in PNG in accordance with PNG Electricity Industry Policy. The TPA facilitates third party access arrangements for the electricity industry in PNG. The Grid Code facilitates and complements the TPA Code with technical rules and guidelines.