Sector Reform and Utility Commercialization (SRUC) Task Order: Support to Papua New Guinea Power Limited (PPL) on Data Management, Metering, and Customer Engagement

The SRUC Task Order aims to promote utility commercialization and equitable, effective reforms that will enhance the financial viability and long-term sustainability of developing countries' electricity systems. In Papua New Guinea (PNG), the SRUC team is providing technical assistance to PNG Power Limited (PPL), PNG's fully integrated, state-owned electric utility. PPL's major revenue source is its large power users (LPU), who are managed and billed through the Gentrack billing system. The SRUC team has been working with the PPL team to improve the quality and integrity of the LPU customer information, undertake a data cleansing effort, and establish a reliable LPU database through a customer information survey. This included developing a customer information survey methodology tailored to PPL's needs and customized training on data cleansing, data entry controls, revenue protection, customer engagement, and commercial loss reduction. The SRUC team supported PPL as it undertook the survey and data cleansing process for the Port Moresby (POM) Operations Centre to improve the data integrity of its LPU customers in the Gentrack database. The output of the survey, together with an analysis of Gentrack data for the GS and IND customers included in the POM Operations Centre, has highlighted inconsistencies that would require back billing of identified customer accounts. Back billing these customers would significantly improve PPL's revenues and reduce its commercial losses. PNG's Electricity Code is the responsibility of the Independent Consumer and Competition Commission, and PPL is a licensee providing services under the Electricity Industry Act. The Code refers to a Standard Customer Supply and Sale Contract and provides a template for such a contract. A review of The Code and the Standard Customer Supply and Sale Contract as amended and implemented by PPL is provided. The Code allows for deviations to the Standard Contract for customers with minimum demands of 10MW or more and lists the conditions for a particular supply point that PPL is allowed to estimate bills, recover costs to rectify a breach of contract, and disconnect or reconnect supply. The SRUC team has identified leading practices in back billing that PPL can adopt when back billing customers in the context of managing collections and arrears. These leading practices are based mainly on the electric utility industry but also from the water and general municipal sectors. The report concludes with short-term and long-term recommendations tailored to PPL that can help it improve collections and provide a nuanced customer engagement strategy. PPL's current back billing processes are examined, and mechanisms to reduce back billing as part of a structured and integrated process are described. The report provides a basis for PPL to amend and refine its current back billing processes to align with leading practices for utilities. The recommendations are designed to help PPL improve its financial position and operational viability by reducing commercial losses and improving revenue collection.