Minister Directs PNG Power to Combat Theft and Defaults

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Minister Directs PNG Power to Combat Theft and Defaults

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Papua New Guinea’s state-owned electricity company, PNG Power Limited (PPL), is facing a significant financial crisis, largely exacerbated by widespread power theft and unpaid bills. Richard Maru, the Minister for International Trade and Investment and the minister responsible for PPL, has issued a directive for the company to declare “war” on power thieves and defaulters. This action is a key component of his “Three-Step, Six-Month Plan” to stabilize PPL, improve revenue collection, and ultimately provide more reliable and affordable electricity.

Power theft and non-payment of bills are substantial contributors to PPL’s financial woes, accounting for over 25% of the company’s electricity losses. In some areas, such as a major center on the Highlands grid, approximately 80% of customers do not pay for electricity. PPL Chairman Mal Lewis stated in August 2026 that overall electricity losses, including theft and technical issues, are around 12%. Theft manifests in various forms, including illegal connections, tampering with meters, and unauthorized tapping into power lines, with both individuals and businesses implicated. One company was found to have accumulated nearly K30 million in debt through electricity theft, though existing laws limited the recoverable amount.

To combat these issues, Minister Maru has instructed PPL to conduct nationwide meter audits and implement advanced detection technology to identify illegal connections. A trial program for outsourcing revenue collection has been initiated in Mt. Hagen and Kundiawa, with the potential for expansion if successful. Additionally, PPL plans to deploy smart meters and upgraded monitoring systems to electronically track electricity usage and detect tampering.

The financial challenges at PPL are extensive, with the company reportedly owing over K1.2 billion to Independent Power Producers (IPPs) and other creditors as of August 2026. The government is seeking K100 million through a supplementary budget to help reduce some of these long-standing debts. Minister Maru has also indicated that proposals for the future of PPL could include partial privatization and restructuring of its long-term debt, as well as the potential transfer of loss-making “B” and “C” centers to provincial governments or private companies. This comprehensive approach aims to address the deep-seated problems that have led to PPL’s “insolvent, loss-making, and struggling” state, as described by Minister Maru in July 2026.

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