PNG Power will increase electricity prices by 6 percent and consumers will now be getting less electricity units for every purchase of electricity come new year.
For instance, the old domestic Esipay rate for power was 0.6968t/kwh. The new rate is now at 0.7379t/kwh. To purchase 19 units of electricity, customers will multiply 19 units (kwh) by 0.6968 to come up with the required amount which is around K15 including tax. With the new rate at 0.7379t/kwh, customers will now pay an additional K0.86 to purchase the same unit of power. With the minimum purchase set at K15, customers will have no choice but to pay K15 and above. PPL explained that from the K15, K1.50 is goods and service tax (GST). The balance of K13.50 will be used to purchase the units. Based on the old rate of 0.6968t/kwh, customers will get 19.37 units of power (current). With the new rate of 0.7379t/kwh, customers will get 18.3 units of power. In other words, the customer’s units purchased from K15.00 is reduced by only 1.07 units. PPL in a statement said the increase was an annual review in electricity tariffs specifically based on the fluctuations in fuel prices, PNG Consumer Price Index (PNGCPI), Australian CPI, USCPI and exchange rates over the 12 months from October 2012 to September 2013, as required under the electricity regulatory contract. The contract is a legal document that binds PPL and ICCC to the ICCC Act and the Electricity Industry Act. This contract establishes the mechanism by which PPL applies to the ICCC for the various tariffs associated with the supply and sale of electricity. PPL said it does not rely on the National Government Budgetary system and thus, the tariffs set for electricity services provides the only major source of revenue for PNG Power. The tariffs set under the electricity regulatory contract enables PNG Power to earn an acceptable rate of return on assets to fund new capital works and extend electricity services to majority of the population. "On our part, we will lift our service standards to a level set by the ICCC that is acceptable to industrial and commercial users of electricity. This is an obligation and a commitment that reflects the degree of certainty provided to PNG Power by the regulatory contract and can be achieved as long as the tariffs are set to recover efficient cost of operations and maintenance and contribute towards capital formation,’’ PPL CEO John Tangit said. PNG Facts / Post Courier Comments are closed.
|
Papua New Guinea Breaking NewsPapua New Guinea daily News updates Let Your Voice be heard: Submit your news articles, commentaries, letters , Photos, Media Releases etc to us on this email: pngfacts@gmail.com
Mining & PetroleumTop Links |