Premised　on　our　contention　about　the　narrowness　of　the　contemporary,　industry-centric,　focus　to　understanding　the　causes　for　the　underdeveloped　state　of　electricity　industry　in　PNG,　this　paper　develops　a　governance　perspective　for　facilitating　such　an　understanding.　The　analytical　framework　employed　for　this　purpose　is　informed　by　core　tenets　of　the　state-society　relational　theory.　The　analysis　undertaken　in　this　paper　suggests　that　the　development　of　electricity　industry　in　PNG　has　been　ad　hoc　in　nature,　typified　by　the　prevalence　of　piecemeal　efforts　for　redressing　electricity　issues　of　the　time.　Further,　this　ad　hoc　development　is　essentially　reflective　of　the　underlying　crisis　of　governability,　as　indicated　by　persistent　political　instability　and　frequent　changes　of　government.　This　crisis　has　arisen　from　the　ubiquity　of　conflicts,　at　the　local　level,　between　the　western-style　formal　governance　framework　adopted　after　independence,　and　the　culturally-attuned　informal　governance　framework　that　has　existed　in　the　local　communities　for　centuries.　In　such　environments,　the　government　tends　to　focus　on　redressing　the　immediate　threat　of　political　survival.　The　question　of　long-term　development　of　the　country　(including,　electricity　industry　development)　has　therefore　assumed　a　dormant　role.　Outcome　is　the　persistence　of　underdevelopment　of　the　electricity　industry.