Amnesty Campaign: A Novel Solution to Electricity Theft in PNG

PNG Power Ltd. (PPL) is Papua New Guinea’s (PNG) state-owned power utility that oversees the country’s three main power grids, providing access to approximately 15% of the population. One of PPL’s core challenges is combating electricity theft and non-payment. About 30% of energy generated is lost to power theft, undermining PPL’s capacity to invest in growth and reach unconnected populations. Underlying reasons include lack of a consumer payment culture, lack of eduation on proper use of electricity, poor energy theft control mechanisms, and widespread poverty.

The USAID – PNG Electrification Partnership (USAID-PEP) Activity works directly with PPL to enhance its financial viability and operational performance. As such, combating electricity theft is a shared goal for both of these stakeholders. Based on Collaborating, Learning and Adapting (CLA) principles, USAID-PEP worked with PPL to analyze the source of losses, co-design an innovative solution (the Amnesty Campaign) based on the local context and understanding of consumer payment culture, and support its implementation. The Amnesty Campaign is the first-of-its-kind approach in PNG that has converted previously non-paying electricity consumers into paying customers.        

In terms of organization-wide impacts, the Amnesty Campaign has united several internal units within PPL, enabling them to work more cohesively to reach common goals through CLA. PPL has also implemented a more systematic approach to community engagement, based on a five-step plan focused on building relationships first and ultimately leading to monitoring energy consumption. Overall, the Amnesty Campaign has resulted in more than 45,000 new individuals registered in PPL’s billing system as of June 2023. These results have exceeded expectations from PPL management, instilling confidence in this novel approach and likelihood of wider adoption.