Dirio Gas & Power Ltd and PNG Power Ltd is a 100 percent nationally owned Independent Power Producer supplying power to Port Moresby. Photo: MRDC
Papua New Guinea's former Prime Minister Peter O'Neill has lashed out at a private power company for threatening to turn off power because of outstanding payments owed to it.
PNG electricity company threatens to pull plug on Port Moresby
The Dirio Gas and Power Company announced it was going to shut off power at midday Tuesday, in a move to force state-owned PNG Power to pay them 240 million kina.
O'Neill described the threat as "arrogant" and one that held Port Moresby residents at ransom.
He also called on Prime Minister James Marape to intervene and resolve the issue.
Two weeks ago, the courts urged PNG power and Dirio to resolve the dispute after both parties went to court.
The company's chairman Isaac Lupari was quoted by the Post-Courier newspaper saying PNG Power "could not live up to their agreement".
RNZ Pacific correspondent in PNG, Scott Waide, said even if Dirio had cut the power there would still be blackouts.
"There's always a blackout, at least twice or three times a week. So it wouldn't have made a difference," he said.
Waide said not many people knew about the actual ownership of Dirio Power.
"On paper, it's owned by MRDC ( Mineral Resources Development Company) and a few provincial governments, but Peter O'Neill's come out and basically exposed a whole lot of things that many people were no aware of and also questioning the end game as to why Dirio is pushing for that 240 million kina now."
He said Papua New Guineans are questioning how the company was able to access LNG from the huge LNG sites in the highlands.
He said former PNG Defence Force Commander Jerry Singirok, one of the outspoken critics of the deal between MRDC and Dirio, has said the cost at which PNG Power is paying Dirio is overpriced compared to other power suppliers.