The National Energy Authority (NEA) has announced a major regulatory reform aimed at modernizing the country’s electricity sector and strengthening energy security.
Speaking during a press conference this morning in Port Moresby, NEA Managing Director Ronald Maketa said the authority is introducing five core regulations to establish a modern and effective regulatory framework for the energy sector.
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Meketa said the reforms come at a time when global fuel prices are rising and could impact the country’s economy.
“Over the last two weeks, we have seen spikes in fuel prices. The crude oil was hovering around K60 per barrel three weeks ago and now it’s K100 per barrel,” he said.
“So, we have to brace for the impact as an economy and as a country in the past week on the cost of doing business, cost of fuel and very importantly energy security for the country.”
Meketa said the regulations are not directly related to the recent fuel price increases but are designed to strengthen how energy in the electricity sector is regulated.
He said since the establishment of the NEA under the National Energy Authority Act 2021, the authority has undertaken a comprehensive legislative reform program to centralize regulation of the energy sector.
“Previously it was assimilated or partially regulated through different authorities and institutions. Currently it’s being centralized,” he said.
The reform process began with the National Energy Authority Amendment Act 2023 to address constitutional compliance issues relating to the separation of powers between the executive and Parliament, particularly regarding the imposition of regulatory fees and charges.
“No one has powers on both fees and charges except through the parliamentary process and we have to comply with that,” Meketa said.
He said the authority has repealed and replaced several regulations previously administered under the Electricity Industry Act Chapter 78 and re-enacted them under the NEA Act, officially designating the authority as both the national energy regulator and policy adviser to the government.
Meketa said the reforms resulted in the development of five key regulations that now form the operational framework for the electricity sector.
These include the National Energy Authority General Regulations 2025, National Energy Authority Service and Installation Regulations 2025, National Energy Authority Electricity Industrial Regulations 2025, National Energy Authority Refined Petroleum Product Supply Regulations 2025 and the National Energy Authority Off-Grid for Small Power Systems Regulations 2025.
“These regulations establish the technical safety and regulatory framework for electricity services, installations, appliances and professionalization of the sector and ultimately electrification,” he said.
The MD highlighted that electrification remains a major challenge in the country.
“While we are probably not good at electrification and power systems, 80 per cent of the population is not connected to electricity,” he said.
“It’s a challenge for us nationally as a government and a country to bring those national services to communities, islands, valleys and mountains.”
He said the authority is also progressing reforms to regulate refined petroleum products supply, noting that PNG currently lacks a specific law governing the licensing of fuel suppliers.
“Currently we don’t have a law that regulates that. Anyone can go and put up a service station and start supplying fuel,” he said.
Meketa said the lack of a national fuel storage system also poses a risk to energy security.
“All other countries in the Pacific have fuel storage systems that can cover three to six months of national supply. We don’t have one,” he said.
“The challenge now for the government is to establish a law that will regulate the industry and protect the energy security for our country.”
He said the reforms demonstrate the authority’s commitment to building a stable and transparent energy sector.
“Energy drives the economy. It’s the building block, the foundation and the pillar,” Meketa said.
“Energy security is key.”
Meanwhile, NEA Executive Manager for Legal and Compliance Jeklin Talonu said the reform program aims to establish a modern, transparent and legally compliant regulatory system for the electricity industry.
“Today the National Energy Authority wishes to inform the public that the energy sector is undergoing a comprehensive legislative and regulatory reform program aimed at establishing a modern, transparent and legally compliant framework for regulation of the electricity industry,” Talonu said.
She said the regulations could not be enacted earlier due to a Supreme Court decision reinforcing the constitutional separation of powers.
“Any raising of revenue through taxes or levies must be done through primary legislation and not through regulation,” she said.
Talonu explained that the newly introduced regulations cover several areas including administrative governance, technical standards, appliance certification and professional licensing.
“The first one being the general regulation provides the overarching administrative and governance framework for the electricity supply industry,” she said.
“It sets out procedures for electricity licence applications, requirements for annual licence fees and the classification of electricity customers.”
She said the service and installation regulation establishes technical and safety standards governing electrical installations and wiring systems, while the appliance regulation ensures electrical appliances meet international safety standards before being imported or sold.
Another regulation introduces a professional licensing framework for electrical contractors and electricians to ensure electrical work is carried out safely and competently.
Complementing these measures is the Off-Grid for Small Power Systems Regulation, which provides a regulatory framework for electricity generation systems in remote areas.
“These systems may include solar, mini-hydro, wind or hybrid generation systems designed to supply electricity to remote communities and isolated facilities,” Talonu said.
She said the reforms represent a major milestone for the country’s energy sector.
“These regulations create a comprehensive regulatory framework for the electricity sector, strengthening oversight across the electricity value chain and ensuring electricity services are delivered safely and reliably,” she said.
Talonu said the NEA remains committed to strengthening the legislative and regulatory foundations of the sector to support national energy security and expand electricity access across both rural and urban communities.