PNG Power Limited (PPL)has released another statement, the second this week regarding the matter with Dirio Gas & Power Company Limited, stating that it stands firm with the Courts decision on yesterday, ordering Dirio to restore its power supply the Port Moresby transmission grid.
PNG Power Board Chairman, Mr. McRonald Nale in the statement released today said that the step taken by PNG Power to seek the courts orders, was sought after Dirio had approached the same courts earlier, to order PNG Power to pay unsubstantiated outstanding payments, or will be shutting down its power supply into the PNG Power Port Moresby Grid.
“There is now a temporary Court Injunction/Order in place and therefore, we will allow the courts to take its course on this issue,” Mr Nale said.
Mr. Nale expressed that any discussions referred to by Dirio in its Press Release today Tuesday 1st October addressing PNG Power’s inability to pay Dirio’s Outstanding bills only undermines the Court Ordered mediations that is currently on foot.
Mr Nale further states that all parties in this mediation should refrain from making any comments which are now subject of mediation in court.
“Essentially, any such discussions relating to PPL’s inability to pay Dirio’s Outstanding bills can take place and PPL encourages such discussions between the parties and further request that PPL be included in these discussions, however, supply of power must continue to the general public given this is an essential service,” Mr Nale said.
Mr. Nale said PNG Power acknowledges that it owes Dirio outstanding bills, and these are matters now subject to the court ordered mediation.
PNG Power has an existing Power Purchasing Agreement with Dirio Gas and Power Company, relating to 30 megawatts of power to be supplied by Dirio to address power reliability within the Port Moresby Power Grid.
Under this PPA with Dirio Gas and Power Company, obligations sit on either side under normal and during dispute situations. Mediation that is underway is in line with the PPA that PPL is committed to working with Dirio to resolve all concerns relating to the power supply.
On Friday 27th of September, Dirio gave notice to PNG Power on the shutting down of its power supply into the Port Moresby Power Grid, resulting in an instant Load Shedding Exercise on commencing on the same day.
While the load shedding was on, Dirio was required to comply with the Court Injunction/Order by switching on their supplies back into the Port Moresby Grid.
However, there are ongoing load shedding taking place in various feeders due to ongoing generation shortfall being experienced within the Grid.
Key Points of the Court Order
• The court has ordered that Dirio restore electricity supply from its power station near the PNGLNG Liquefaction plant at Papa Lea Lea, Central Province, to PPL’s Port Moresby electricity transmission grid without delay.
• Dirio’s Notice of Suspension of Electricity Supply dated 27 September 2024 has been stayed pending the determination of the ongoing legal proceedings.
• Dirio is restrained from shutting down or reducing its electricity generation capacity below 30 megawatts to the Port Moresby Electrical Transmission Grid until the court reaches a final decision.
• These orders are temporary and will remain in effect until 9 October 2024. The court has adjourned the proceedings to this date for further review and to determine whether the interim orders should continue.
PNG Power then in that statement reaffirmed its commitment to supply electricity to its customers and to continue to keep the public informed about all developments related to this matter.