By GEORGINA MICHAEL
MINISTER for International Trade and Investment and Minister responsible for PNG Power, Hon. Richard Maru, says PNG Power Limited (PPL) is “in a horrible and total mess” and is now insolvent, with debts of K1.2 billion.
Speaking at a media conference today, one week into his appointment as Acting Minister responsible for PPL, Mr. Maru said the company is facing load shedding, blackouts, the highest power tariffs in the world, and massive losses.
“After a week into my job as the Minister responsible for PNG Power Limited, I am horrified by the total mess PPL is in,” Mr. Maru said.
“It is a loss-making, insolvent and struggling entity due to load shedding, blackouts, the most expensive power tariffs in the world, and a loss of over 25 percent of sales through technical losses and theft.”
Mr. Maru said PPL’s total loans now stand at K2.3 billion as of June 2026, and it owes Independent Power Producers (IPPs) and other creditors more than K1.2 billion. He warned the company could record another K100 million loss this year if nothing is done.
He blamed the crisis on several factors, including bad Power Purchase Agreements (PPAs). PPL is losing money every day from PPAs with Independent Power Producers (IPPs), especially Munum Power and Dirio Power. The company is also losing up to K80 million a year operating C-Centres, while more than 26 percent of power is lost through technical faults and theft. Operational and management costs continue to increase instead of going down.
Minister Maru said with the extent of the problems and the current state of the company, there are many people to be blamed.
“Political leaders who approved the loss-making PPAs with IPPs, the Board and Management for excessive cost overruns, and the Government for its indecisiveness in selling the C-Centres to provincial governments and private sector partners,” Mr. Maru said.
Following his appointment as the Minister responsible for PNG Power, Mr. Maru outlined the immediate steps he has taken within the first week.
“I have supported the PPL Board and Management to appeal the recent court decision ordering PPL to pay debts owed to Dirio Power, engaged lawyers and forensic accountants to review PPAs with Munum Power and Dirio Power and seek court action to nullify any that are
fraudulent or unfair under the Fairness of Transactions Act, and directed PPL to prioritise support for two solar projects in Lae, namely Wawin and Yalum.”
Maru added, “I am also preparing a submission for Cabinet in the next two weeks proposing to settle PPL’s debts, sell the C-Centres, and prepare the three profitable grids of Port Moresby, Ramu and Gazelle for partial sale to the private sector, including superannuation funds and landowner companies.”
Minister Maru described PPL as the nation’s pride and an iconic company owned by Papua New Guineans, and assured the people that PPL is in for its biggest shake-up.
“PNG Power is in a total mess with continuous blackouts, high operational costs, poor service delivery and continuous losses. We need to fix where it is bleeding and turn this business around. It needs a Board and Management that understands how a business runs, with a Government willing to make tough decisions.”
He said he is engaging lawyers to take the matter to court and needs public support to work together to turn the business around.
Minister Maru assured the people of Papua New Guinea that he has exactly eight months to fix the insolvent company and hold accountable those who have left the company in this state.