Losing K25 million every month

 News that matter in Papua New Guinea

PNG Power employees protest against their management.

Losing K25 million every month

PORT MORESBY: Imagine losing about K25 million every month to thieves.

That is what Papua New Guinea Power Limited is losing to electricity thieves.

Read on for the details as reported by The National:

Big leak at PNG Power

June 24, 2021The NationalMain Stories

Flagon Bekker

By PETER ESILA
PNG Power Limited is losing about K25 million a month to electricity theft around the country, with some employees involved in the illegal activity, says managing director Flagon Bekker.
Bekker told a PNG Power partnership workshop in Port Moresby yesterday that the company needed to change.
“I want a win-win situation, but I won’t lie,” he said.
“PNG Power needs to change. And the people of PNG wants PNG Power to change. And I can’t let anyone stop me from making those changes that the people need.”
Bekker said most of the electricity theft was happening in Port Moresby by some staff members.
“There is only a skills set that can do it – it is our own people in the organisation,” he said.
Bekker said expressed disappointment that cases of theft reported to police were never prosecuted.
“We report them but nothing happens,” he said. “We have got a lot of people stealing power. Sometimes it is our own people helping (others to) connect and steal power. And we need the unions to help as well.”
He told the people involved: “We know who you are.”
PNG Power employees yesterday called for Bekker’s removal and for Prime Minister James Marape to order an investigation into the state-owned enterprise’s operation.
Bekker said the company’s interest must come first.
“There are things that we can talk about,” he said.
He urged the workers’ trade unions to work with the management in stopping the illegal activity.
“I believe (the union has) the control and ability to help us,” he said.
“We are looking at about K25 million a month nationally.
“If it is stopped, (there will be) higher revenue, more money coming in to pay salaries. And I really want the union to understand that they can do a lot more than what they are doing now to help the business be successful.
“You can’t just keep asking for money when the business is not doing well. We really need the union and us to work together to make PNG Power a success.”
Bekker said the reality was that “we are not paying all our bills. We are earning less than we spend”.
“I appeal to the unions to help us stop workers connecting illegal connection,” he said. “They have the control and ability to do that and I am wondering why they haven’t.”
He said technology would be a solution.

PPL getting K250mil

June 24, 2021The NationalMain Stories

PNG Power Ltd will receive K250 million funding support from shareholder Kumul Consolidated Holdings (KCH) Ltd that will go towards stabilising the grid, says managing director Flagon Bekker.
Bekker said during the PNG Power partnership workshop in Port Moresby yesterday that the Government was doing everything it could to help PNG Power in very difficult circumstances.
“Globally, there is no government that is finding it easy, our shareholders and KCH really have been supportive,” he said.
“They are putting capital into us to help us stabilise the grid.
“Everyone is trying to come to the table to help us try to do the right thing. They are putting real money and all we need is time.
“We will start putting hardware on the ground, it is repair, refurbish and replace of hardware and infrastructure.
“These are basics, we are going to spend it on hardware that will improve reliability and availability that will work for the independent power producers because the more electrons I sell, the more I buy from them.
“The sector has been left under-invested for too long and everyone is coming to the table to help us around.”
Bekker clarified that the funds will not fix but stabalise the grid.
“It will not going to fix the problem but it will stabilise it, so that it does not get worse,” he said.
“To fix the problem, you are going to need another K1 billion and that plan is about how do you raise that money, either sell assets and that is the debate at the National Executive Council level on how do you raise that capital.”
Bekker thanked stakeholders who have been supporting PNG Power.
PNG electrification partnership countries (Australia, Japan, New Zealand and the United States), the World Bank, the United Nations Development Programme and other donors and financiers.

Bekker: Single buyer concept will ensure better competition

June 24, 2021The NationalNational

A SINGLE buyer concept to ensure effective power generation and supply in the country will enable better competition, says PNG Power Ltd managing director Flagon Bekker.
Energy Minister Saki Soloma said during the PNG Power partnership workshop in Port Moresby yesterday that the Government’s decision to adopt the single buyer concept by PNG Power Ltd must be based on a careful analysis of matters such as:

· THE size of the market;

· THE capacity of the mandated entity to perform the role as a single buyer;

· RESPONSIBILITIES for enabling the success of the new market concept, including solutions to legacy issues such as outstanding liabilities; and,

· FUTURE development of the power market, among other markets.

“A comprehensive study must be undertaken to identify all issues likely to contribute to the success or failure of the single buyer concept,” he said.
“The experience in PNG, if an entity playing the roles of a regulator and a market player at the same time, has not been successful.
“So the option of NEA playing the role of a single buyer will amount to repeating what has not worked in the past.
“I think it is important that we move one step at a time.
“The first step is for relevant government departments and SOEs to support the newly-established NEA to be a strong driver and regulator of the energy sector. The next stage will be market reforms.”
A strong, transparent and a accountable regulator is much needed by the country to bring 100 per cent electricity access to all households in PNG and deliver much-needed power to commercialise and industrial consumers.

Union wants PPL to terminate Bekker, executive committee

June 24, 2021The NationalNational

THE PNG Energy Workers’ Union, which includes the PNG Power Ltd workers, is demanding the termination of managing director Flagon Bekker and the executive committee and wants them investigated for alleged mismanagement or they will stand down from work.
They also want Prime Minister James Marape to order an investigation into problems faced by the company.
Other demands include:

· STOP  the unbundling and restructure until consultation and awareness are carried out nationwide among workers;

· ADDRESS all outstanding workers’ industrial matters as per the 2019 agreement; and,

· REVELATION of the company’s business plan for corporate, technical and operation strategies to continue improving its service reliabilities and revenues.

According to a petition by the union, the issue of blackouts nationwide is prevalent because the management is focused on the restructure and unbundling without any business plans on improving blackouts and collecting revenue.
Union general secretary Santee Margis said the PNG Power management had not organised any consultation meetings with the union to address any issue raised.
“The union represents each member in the workplace who are upset about what has been happening such as the restructure and unbundling,”he said.
“That means some of the organisations within PNG Power will have to be shelved and unbundled and the workers will have to be displaced.
“Their future, they have loan commitments, they have school fees for their children, some are building houses, so it’s a big problem that the workers are now facing.
“We have written to the management that this must not happen because workers are unsure about their future.
“The enterprises agreement that was signed in 2019 has been breached by the management.”
The workers are expected to meet again today to give the management and government authorities time to address them.