PLN eyes power-pricing adjusted<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State power company PT PLN has made a proposal to apply an
\nautomatic pricing adjustment scheme, starting next year, to keep
\nup with the fluctuating costs in generating power.<\/p>\n
The firm will apply the method to households that use more
\nelectricity next year, PLN president director Eddie Widiono said
\non Thursday.<\/p>\n
\"We will (then) apply this to customers that don't use much
\npower too, like those (using low voltage) of 450 VA (volt
\nampere), by 2007,\" said Eddie.<\/p>\n
PLN charges different prices for different neighborhoods
\nand\/or businesses depending on their power capacity and usage.<\/p>\n
At present, it cannot change the rates without approval from
\nthe government and the House of Representatives.<\/p>\n
With the automatic adjustment scheme, prices will be changed
\nperiodically according to the fluctuation of its cost elements,
\nsuch as fuel prices, inflation, rupiah rate against the U.S.
\ndollar, and contract prices to buy power from private producers.<\/p>\n
\"Usually the prices are adjusted every three months,\" said
\nEddie.<\/p>\n
PLN has seen its power generation costs rising since March,
\nwhen the government raised domestic fuel prices by 29 percent.<\/p>\n
Another headache is underway as the House's budget commission
\nhas recommended that PLN pay a special market price -- fixed at
\nRp 4,740 for the rest of the year -- instead of Rp 2,200 it pays
\ncurrently for high quality diesel, for some 3 million kiloliters.<\/p>\n
The commission also recommended that the company's subsidy for
\npoor customers be increased from Rp 4.1 trillion to some Rp 12.5
\ntrillion in the second revision to the state budget.<\/p>\n
\"Last year, we managed to book operational income,\" said
\nEddie. \"But with the current prices, we'll surely see an
\noperational loss,\" he added.<\/p>\n
PLN booked an operational income of Rp 2.56 trillion (US$256
\nmillion) last year, the first time since the monetary crisis in
\n1997 prompted a string of losses. The company recorded net losses
\nat Rp 2.02 trillion in 2004.<\/p>\n
It is still unclear whether the power utility will get
\nsubsidized prices for the high quality diesel it uses next year
\nor if it will follow the market prices applied currently to
\nindustries.<\/p>\n
PLN uses the more expensive petroleum fuel to fire up power
\nplants if electricity produced by utilizing hydropower,
\ngeothermal, gas, and coal proves to be insufficient.<\/p>\n
The company usually turns to oil-based fuels to fire its
\nplants as power demand jumps during the peak hours between 5 p.m.
\nand 10 p.m.<\/p>\n
Although oil-fired plants contribute only around 30 percent of
\nthe country's total power capacity, close to 70 percent of the
\nnation's total power-generation costs are attributed to petroleum
\nfuel.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-eyes-power-pricing-adjusted-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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