Dirio Gas & Power Company Limited (Dirio) has pulled the plug on its power supply to the Port Moresby city power grid due to outstanding payments owed by PNG Power Limited. Dirio, the countrys first independent power producer owned entirely by landowners from the PNGLNG project areas, released a statement on Friday 27th September stating that the power company has advised PNG Power that it has shut down its power station in Port Moresby. Dirio was founded in 2017 in line with the government policy to increase local participation in key industries to the countrys economic growth, and to ensure the governments target of 70% electrification by 2030. Since its inception, Dirio has never been the beneficiary of any government support like tax concessions or state guarantees. The landowner company started the sale of electricity to PNG Power under a long- term Power Purchase Agreement (PPA) in November 2021. Dirio, together with its partners, has operated the Dirio Central Province Power Station in accordance with the PPA terms to meet the electricity demands of the residents and businesses of Port Moresby. Despite having 45MW of capacity available, PNG Power has refused to take any more than 30MW, limiting the power generation available to Port Moresby residents and business houses. Dirios Chairman, Ambassador Isaac Lupari, said PNG Power continues to neglect its obligations under the PPA despite numerous attempts by Dirio to engaged and elicit a commitment to pay Dirio and its landowner shareholders un the PPA. The situation has now become untenable and PNG Power owes Dirio more than K240 million. By issuing the statement, the chairman said the company does not intend to cause inconvenience for the residents and business houses in the city, but the situation has gone to a point that warrant such action to be taken to get the attention of the government and the state owned PNG Power. Dirio is committed to being a source of reliable electricity for customers in PNG, and we hope that a resolution to this issue of non- payment can be resolved. Dirio operates by converting a certain percentage of gas from the PNG LNG plant site located just across the main highway from it, to electricity as part of Domestic Market Obligation (DMO) of the PNG LNG project. This gas to electricity is then supplied to the Port Moresby power grid. Meanwhile, after Dirio shut its power supply to the city at 12midday yesterday, PNG Power issued a notice on social media platforms advising city residents of an emergency power load shedding which is currently in effect.