PT PLN first half losses surge 12-fold<\/p>\n
JAKARTA (JP): Cash-strapped state electricity company PT
\nPerusahaan Listrik Negara (PLN) announced on Thursday a
\ntwelvefold increase in losses of up to Rp 11.58 trillion (US$1.4
\nbillion) in the first half of the year, as compared to Rp 974
\nbillion for the same period last year.<\/p>\n
The January-June 2000 loss exceeds the annual net loss of Rp
\n11.3 trillion recorded last year.<\/p>\n
A company balance sheet published in the local papers revealed
\nthe first half loss occurred despite a rise in net revenue of 30
\npercent to Rp 10.11 trillion over the period, from Rp 7.75
\ntrillion over the corresponding period of last year.<\/p>\n
The company's operating costs surged to Rp 12.3 trillion in
\nthe first six months of the year, from Rp 8.76 trillion for the
\nsame period of last year.<\/p>\n
The cost for the purchase of power surged four-fold to Rp 4.13
\ntrillion in the first half of the year from Rp 1.07 trillion in
\nthe same period of last year.<\/p>\n
PLN buys power from independent power producers (IPP) at
\naverage price of 5.5 U.S. cents or about Rp 453 per kilowatt hour
\n(KwH) but resells it to the public at an average of Rp 250.<\/p>\n
Debt payment reached Rp 5.9 trillion in the first six months
\nof the year as against Rp 2.9 trillion in the same period of last
\nyear.<\/p>\n
The company suffered Rp 3.5 trillion in foreign exchange
\nlosses during the first half of the year, as against a foreign
\nexchange gain of Rp 2.7 trillion for the corresponding period of
\nlast year.<\/p>\n
PLN has been hard hit by the three-year economic crisis as it
\nsells its power in rupiah but pays most of its costs, including
\nfor power from IPPs and spare parts, in dollars.<\/p>\n
The state company has signed power purchase agreements with 27
\nIPPs, which are all consortiums comprising of international
\nenergy companies and businesses owned by former president
\nSoeharto's family members and friends.<\/p>\n
Some of the private power projects have been on stream and
\nsome others were suspended by the government in 1997 and 1998 as
\npart of the retrenchment measures to cope with the monetary
\ncrisis.<\/p>\n
Some IPPs, including MidAmerican Energy Holdings, formerly
\nknown as CalEnergy, have sued PLN for its refusal to fulfill its
\ncontractual obligations.<\/p>\n
MidAmerican won a US$573 million-worth arbitration lawsuit
\nagainst PLN but the state company and the government as the major
\nshareholder have yet to pay the damages.<\/p>\n
PLN is now seeking to re-negotiate its power purchase
\ncontracts with the IPPs that have come on stream in a bid to
\nlower the price of their power.<\/p>\n
The government allowed PLN to raise its power tariff by 34
\npercent in April this year to ease its financial burden. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-pln-first-half-losses-surge-12-fold-1447893297",
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