President Remengesau Jr. will sign into law today amendments to Palau Energy Act that gives Palau Energy Administration (PEA) full regulatory authority over production, purchase or sale of energy.
Energy production, purchase and sale under Palau Public Utilities Corporation (PPUC) will now be regulated by PEA. PPUC will require PEA approval before entering into “major business negotiations” involving energy production, purchase or sale.
PEA approval will also be required if PPUC was to transfer ownership interest or operating control to a private entity. Before PPUC adjust electricity rates or adopt tariff schedule, PEA’s prior approval will be required as well.
President Remengesau in his transmittal letter to both Houses of OEK, expressed that the amendments harmonized the 3 chapters under the Palau Energy Act giving “necessary regulatory authority over PPUC and other energy producers.”
He added that the change was a “specific demand of the 2017 Palau Energy Summit and Paris Agreement Implementation Workshop”.
Furthermore, President Remengesau asserted that PPUC will be in charge of its day to day operation and while PEA “only have regulatory authority over energy sector”.
Palau Energy Administration (PEA), an entity under the Ministry of Public Infrastructure, Commerce and Industries (MPIIC), was created under Palau Energy Act of 2015 and was tasked to monitor all energy-related matters, produce energy report to all relevant parties and set energy efficiency standards for the Republic among others.
Current changes to that law now gives PEA approval powers across all energy related matters.
Palau Energy Act of 2015 was enacted to promote energy security through diversification of the supply of affordable electrical energy including renewable energy. (L.N. Reklai/Editor)