This was revealed during the oversight hearing conducted by the House of Delegates on Tuesday regarding the operation of PPUC.
Baules Tmetuchl, Public Information Officer of PPUC said that during the hearing members of Congress questioned the power distribution company on the planned tariff increases which will be imposed by July or August.
Tmetuchl said that PPUC officials explained to the delegates the factors they had to consider in coming up with a new rates citing that because the government has not paid its outstanding debts it will be forced to increase the fees in order to make up for the losses.
“PPUC looks at the cost of fuel, operational cost, generation and administrative costs,” Tmetuchl cited.
He said currently PPUC is struggling with its finances.
PPUC currently collects $0.24 cents per kwh in residential areas and $0.36 cents per kwh in commercial areas.
Tmetuchl said that PPUC’s tariff increase will be “a significant amount.”
PPUC is buying 1.4 million gallons of fuel at $2.50 per gallon.
The national government owes PPUC over $3 million in electric bills.
In earlier interviews, Ken Uyehara, PPUC General Manager said the company could have used the money to purchase fuel to run the new generators that are set to arrive in June.
The government owes PPUC $3.9 million.
The cost of the new two five megawatt generators is $4 million and to ensure money the purchase and the fuel, PPUC has secured a loan of $3million from NDBP.
He said that despite the money owed to them, PPUC cannot cut the government power off because it would be affecting essential services of the government such as hospital, sewer and water operation.
The two new generators 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 11,354 however the generators at both plants are aging with at least five engines down.
Tmetuchl said a public outreach hearing will be conducted by PPUC on June 14 to 18 regarding the planned tariff increase.
