The Electricity Industry
Under Part IIIB, section 24C of the Electricity Industry Act 2002 (EI Act), the Electricity Supply Industry is declared to be a regulated industry for the purposes of the ICCC Act..
The Commission has among other regulatory functions under the Electricity Industry Act, the licensing functions that permits any person, firm or organisation that intends to operate in the electricity supply industry.
The ICCC administers four main Electricity undertaker licences which are:-
• Electricity Generation Licence;
• Electricity Transmission Licence;
• Electricity Distribution Licence; and,
• Electricity Retail Licence.
PNG Power Limited
The major power utility provider in Papua New Guinea is PNG Power Limited (‘PNG Power’). PNG Power was declared by the Minister of Treasury to be a regulated entity under section 32 of the ICCC Act. PNG Power is also licensed by the ICCC under the Electricity Industry Act to generate, transmit, distribute and sell electricity in Papua New Guinea.
PNG Power also has exclusive right to supply small customers (<10 MW load) within 10km of its network throughout Papua New Guinea.
As a regulated entity, an Electricity Regulatory Contract (the ‘Regulatory Contract’) binds PNG Power and the Commission pursuant to the provisions of the ICCC Act and the Electricity Industry Act.
The Supply and Sale of electricity, the Scheduled Services and the Excluded Services, which are the subject of the Regulatory Contract, have been declared by the Minister for Treasury to be regulated services under section 32 of the ICCC Act.
This Regulatory Contract regulates the prices that PNG Power may charge for the Supply and Sale of electricity, Scheduled Services and the Excluded Services.
The current regulatory period commenced on 1st January 2013 and will end on 31st December 2017.
Other Electricity Undertakers
In accordance with section 24D of the Electricity Industry Act, the following electricity undertakers are also licensed by the ICCC:
1. PNG Forest Products holds a generation licence
2. Western Power holds a generation, distribution and retail licence
3. Lihir Gold Limited holds a generation, distribution and retail licence
4. Ok Tedi Mining Ltd - Generation, Transmission, Distribution and Retail Licence
5. New Britain Palm Oil Ltd – Generation Licence
6. Hanjung Power Ltd – Generation Licence
Third Party Access Code
In accordance with Government Policy, the Commission has recently completed and released a Third Party Access (TPA) Code and a Grid Code for the Electricity Industry in PNG.
The TPA will facilitate third party access arrangements for the electricity industry in PNG.
The Grid Code is also currently being developed for the electricity industry in PNG.