Baules Tmetuchl, PPUC Public Information Officer said that an additional $0.9 cents will be imposed next week to both residential, commercial and government consumers.
Tmetuchl said this increase is based on the oil hike worldwide.
This is a different set of increase; PPUC is again raising its rate by July.
PPUC currently collects $0.24 cents per kwh in residential areas and $0.36 cents per kwh in commercial areas.
The last increase was made in January.
Tmetuchl said that PPUC‘s tariff increase will constitute “ a significant amount.” He however said that depending on the public outreach hearing set on June 14 to 18 and the feedback from the community there is a possibility that the increase may be pushed back temporarily.
Earlier, PPUC announced that the government’s debthas ballooned to $4,063,819.15 placing the power distribution company under financial problems
According to the PPUC, this amount is inclusive of the interest accumulated.
PPUC said that because of the debts, it has sought for grants as well as the $3 million loan from the National Development Bank of Palau (NDBP.)
It added that in addition to bank loans, the Corporation has had to draw down from its investments, meaning that it had to borrow against its own investment funds in its overseas stocks and bonds.
Two new generators are expected to arrive in July which will increase the capacity to 12 megawatts more/
These generators will be for the Malakal Power Plant use which will mean less power outages in Koror.
The Malakal and Ameliik power plants combined has a total capacity of 12,790.
The peak customer power usage reaches to almost 12,000. The generators at both plants are aging with at least five engines down and most has to undergo regular maintenance.
