PT PLN to lose $287m despite rate increase<\/p>\n
JAKARTA (JP): State electricity company PLN projects a loss of
\nRp 2.3 trillion (US$287 million) this year despite the huge
\nincrease in electricity tariffs, the company said yesterday.<\/p>\n
Company president Djiteng Marsudi said the new government-set
\nrate was projected to increase PLN's revenues to Rp 20.8 trillion
\nthis year, from Rp 11.13 trillion last year.<\/p>\n
But these could only cover 90.13 percent of the company's
\nproduction costs, he added.<\/p>\n
\"We would still suffer a loss of about Rp 2.3 trillion this
\nyear at the exchange rate of Rp 6,000 per U.S. dollar,\" Djiteng
\ntold a press conference.<\/p>\n
The company had earlier projected a loss of Rp 11.37 trillion
\nthis year contingent on no increase in the tariff.<\/p>\n
On Monday, the government increased fuel and electricity
\nprices to reduce mounting subsidies.<\/p>\n
The electricity price was increased by an average of 20
\npercent, to Rp 233.59 from Rp 194.74 per kilowatt hour (kwh),
\nstarting this month. The government will raise the tariff again
\nby 20 percent in August and another 20 percent in November.<\/p>\n
The power tariff will average Rp 280.43 per kwh in August and
\nRp 336.52 per kwh in November.<\/p>\n
After November, PLN will further raise power tariff on a
\nperiodic basis every three months, but the increase \"will be
\nmoderate\", Djiteng said.<\/p>\n
The government is allowing low-income households to apply for
\na special rate similar to that applied for non-profit
\norganizations.<\/p>\n
Djiteng said the new rates applied a cross-subsidy scheme in
\nwhich the tariff applied to the poor was raised less than 20
\npercent, while the tariff for affluent households was raised more
\nthan 20 percent.<\/p>\n
Cost<\/p>\n
Djiteng promised to further improve PLN's efficiency to reduce
\nunnecessary costs.<\/p>\n
He conceded that the company was in financial difficulty
\nfollowing the rupiah's sharp depreciation against the dollar over
\nthe past 10 months.<\/p>\n
PLN gets revenue in rupiah, but it pays several components of
\nproductions in dollar, including fuel (gas, diesel fuel,
\ngeothermal), power supplied by the Independent Power Producers
\n(IPPs), spare parts and loan installment, Djiteng said.<\/p>\n
PLN data projects the company will spend this year $590
\nmillion to buy gas, $400 million to buy electricity supplies from
\nIPPs, $79 million to buy geothermal energy from the contractors
\nof state oil and gas company Pertamina, $288 million to purchase
\nspare parts and another $103 million to service its debts.<\/p>\n
It buys gas from the ARBNI and ARII, the Indonesian subsidiary
\nof America's Atlantic Richfield Co. (ARCO), Kodeco of South
\nKorea, the state gas distributor PGN and Exspan of the Medco
\nGroup, at prices between $2.45 and $3 per million British thermal
\nunits.<\/p>\n
PLN has signed 26 power purchase agreements with IPPs but only
\ntwo have come on stream, including the Sengkang combined cycle
\npower plant in South Sulawesi, and the Salak geothermal power
\nplant in West Java.<\/p>\n
Two other private generators are scheduled to come on stream
\nthis year, including the Dieng geothermal power plant in Central
\nJava and the coal-fired Paiton I power plant in East Java.<\/p>\n
The Dieng power plant, owned by a consortium led by CalEnergy
\nof the United States, will come on stream in several weeks, while
\nthe Paiton I power plant, owned by the consortium of PT Paiton
\nEnergy Co., is set for November. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-pln-to-lose-287m-despite-rate-increase-1447893297",
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