PLN to maintain electricity supply for low-income group<\/p>\n
M. Taufiqurrahman, The Jakarta Post, Jakarta<\/p>\n
State electricity company PT PLN announced on Sunday it would
\ncontinue providing services for low-income households despite
\ncuts in government subsidies.<\/p>\n
\"PLN, in fact, plans on distributing electricity services to
\nmore than one million new customers in 2003. Of that figure, 80
\npercent will get the 450-VA (volt-ampere) electricity service,\"
\nPLN president Eddie Widiono said at a press conference here.<\/p>\n
He was responding to earlier reports suggesting that the
\ncompany planned to stop new connections for 450-VA electricity,
\nwhich is mostly subscribed to by low-income customers, due to
\nfinancial constraints.<\/p>\n
The confusion emerged after Eddie made a statement last week
\nduring a hearing with House of Representatives Commission VIII
\nfor energy that PLN would be more selective in installing new
\nelectricity connections, prompting speculation that the cash-
\nstrapped company would cut off the supply of 450-VA electricity
\nand focus instead on more profitable customer categories.<\/p>\n
Installing new connections for 450-VA customers is generally
\nseen as providing a poor return on the investment.<\/p>\n
\"We have set an annual target of an average of one million new
\ncustomers getting the (450-VA) electricity service,\" Eddie said
\non Sunday.<\/p>\n
He also said that of PLN's total annual expenditure of Rp 10
\ntrillion (US$1.17 billion), Rp 1.2 trillion was allocated for
\nestablishing new connections, including those in the 450-VA
\ncategory.<\/p>\n
He said that if the one million annual target was increased,
\nPLN would have to request funds from the government to finance
\nthe expansion of the connection infrastructure.<\/p>\n
\"Having said that, it is untrue that we are going to stop
\nsupplying electricity for the poor. There must have been some
\nconfusion about that,\" he said.<\/p>\n
Currently, according to Eddie, 2.5 million people across the
\ncountry are on a waiting list to receive 450-VA electricity
\nservice.<\/p>\n
Eddie, however, acknowledged that the obligation to provide
\nthe 450-VA service was hampering the company's efforts to improve
\nits financial performance.<\/p>\n
\"Currently, PLN has to shoulder considerable losses because
\nthe total subsidy required to provide the 450-VA electricity
\nservice reaches Rp 6 trillion, while the government has only
\nallocated Rp 4.51 trillion for the 2003 financial year,\" Eddie
\nsaid.<\/p>\n
PLN, Eddie said, was exploring options for providing
\nelectricity to the poor.<\/p>\n
\"We have approached some provincial governments to join our
\neffort to build power lines in some parts of the country,\" he
\nsaid, adding that provinces like Central Java, East Kalimantan
\nand Lampung had contributed some money to provide services for
\nnew customers.<\/p>\n
PLN has also urged independent power producers to deliver
\nelectricity to 13 regions in the country that are still short of
\npower, he said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-to-maintain-electricity-supply-for-low-income-group-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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