Licensing of electricity undertakers

The economic regulatory function is based on three main sections of the National Energy Authority Act 2021. These functions are summarised below.

1. Licensing electricity undertakers

The licensing of an electricity undertaker is stipulated under the NEA Act. The electricity undertakers must meet conditions of license before a licence can be issued. The license must have provisions to other codes, rules and regulations administered by the NEA. License application fee is yet to be determined by the NEA Act. Other levies and license fees have been determined under the NEA Act. The generation levy is charged at PGK0.009 per kWh. The generation license fees are provided below:

Installed Capacity (MW) Annual License Fees (PGK)

1 to 10                 10,000

11 to 20               20,000

21 to 50               30,000

51 to 100             40,000

101 to 500          100,000

> 500                  500,000

The transmission, distribution and retail license fees will be prescribed by the NEA Act.

The guideline and application form for electricity license undertaker has been approved by the NEA Board and is available through communication with the concerned Division.

    An electricity undertaker must not contravene a condition of a licence, penalty fine not exceeding PGK10,000.