All SoEs do not set their own rates: Duma

Minister for State Enterprise and Public Investments William Duma.

By MATTHEW VARI

Sunday, November 6, 2016 (Sunday Chronicle, PNG)

The straightforward response was given by Minister for State Enterprise and Public Investments, William Duma, when responding to queries on the ability of state owned companies price increments, that they impose.

Minister Duma said that SoE are expected to operate as commercial entities, with their price setting and regulation to be done in close consultation with ICCC (Independent Consumer and Competition Commission).

“All the companies that are under the Ministry of State owned Enterprises are expected to operate as commercial entities and any price that are set by them actually in the first instance are approved by ICCC which is the price regulator for all the services that are provided by Service providers in this country,” Duma said.

“Air Niugini for instance, even PNG Power, Eda Ranu, Waterboard all State Owned Enterprises don’t go out on a tandem and impose rates on their own free will.”

“ICCC after taking into account all the circumstances of this country then allows and approves rates. It will be misleading for anyone to think otherwise.”

“In the case of water PNG any rate it charges must go through ICCC. All companies owned by government have no powers to impose rates on their own accord. They are regulated and controlled in the first instance by ICCC.”