DIRIO Power has welcomed a National Court ruling in its favour, bringing to a close legal proceedings over what the company said was PNG Power’s failure to meet its payment obligations under the two companies’ Power Purchase Agreement (PPA).
The company said the judgment affirmed its long-held position that contractual obligations under the agreement must be honoured.
According to Dirio Power, it continued generating and supplying electricity throughout the dispute despite prolonged non-payment, ensuring electricity supply was maintained while the matter was before the courts.
Chief Executive Officer James Nelson described the ruling as an important outcome for contractual certainty and the future of Papua New Guinea’s energy sector.
“Dirio is grateful to the National Court for resolving the matter concerning the unpaid bills,” Nelson said.
“We have always maintained that our Power Purchase Agreement with PNG Power represents a long-term partnership. We trust this decision will help renew that partnership so we can continue providing affordable, reliable and sustainable electricity for Papua New Guineans.”
Dirio Power Chairman Isaac Lupari said the decision provides certainty for the company to move beyond the dispute and refocus on future investment and electricity generation.
“We thank the National Court for upholding the rule of law and recognising the contractual obligations that underpin investor confidence in Papua New Guinea,” Lupari said.
“While this matter should never have reached the courts, yesterday’s decision allows Dirio to focus on the future, continue delivering affordable and reliable power, and pursue new investment that will strengthen the nation’s energy security.”
The company said it now expects PNG Power to comply with the court’s decision and expressed hope that the two organisations can restore a constructive working relationship focused on delivering reliable electricity to the people of Papua New Guinea.
PNG Power had not publicly responded to the court ruling at the time of publication.