PLN faces constraints in power distribution

JAKARTA (JP): A shortage of funds for the development of distribution networks has hampered the state electricity company PT PLN meeting the country's power demand of 455,739 kilovolt amperes (kVa), an executive says.

"At least 50,843 would-be customers throughout the country have been waiting for electricity subscription since Aug. 1," PLN's president, Zuhal, told a hearing with Commission VI of the House of Representatives (DPR) yesterday.

Out of this group, 47,180 are households, 2,162 business institutions, 1,074 public institutions, 393 industrial plants and 34 hotels, he said.

Zuhal said that 329 of the would-be industrial customers are located in Java with their electricity demand for 235,865 kVa, while the other 64 are located in other islands, demanding 21,587 kVa.

"Out of the business entities applying for electricity subscriptions, 1,331 demanding 33,412 kVa operate in Java and another 831 with demands for 28,045 kVa in other islands," he said.

He said 37,065 households in Java are waiting for the supply of 43,196 kVa, while 10,115 in other islands require 66,021 kVa.

According to Zuhal, out of the public institutions waiting for supply, 738 are in Java with total demand for 8,851 kVa and 336 in other islands with demands of 9,468 kVa.

In addition, 16 hotels in Java require 6,433 kVa while 18 hotels on other islands need 2,860 kVa, he said.

Reluctance

Zuhal told the hearing that PLN has been inviting private sector companies to develop power distribution networks to help meet demand for power supplies, "but they are apparently reluctant to do so."

"Both investors and creditors are more interested in investing in power generation plants than distribution networks," he said.

He told reporters that investors seem to feel that power generation projects will provide yields more rapidly than distribution networks.

To overcome future shortages in funds for the development of distribution networks, PLN plans to set up a subsidiary that will be responsible for electricity transmission and distribution throughout the country, he said.

PLN will also establish two subsidiaries, PT Pembangkit Jawa Bagian Barat, which will operate PLN's power plants in West and Central Java, and PT Pembangkit Jawa Bagian Timur, which will operate power stations in East Java and Bali. These two subsidiaries are expected to be operational early next year.(fhp)