PLN seeing red as losses increase

PLN seeing red as losses increase

JAKARTA (JP): State electricity company PT Perusahaan Listrik
Negara (PLN) plunged deeper into the red in 1998 with a net loss
of Rp 9.156 trillion (US$1.1 billion) from Rp 579.01 billion in
the previous year.

The company announced on Friday that total sales increased by
26 percent to Rp 13.7 trillion last year from Rp 10.8 trillion in
1997.

However, the company's debt payment sharply increased to Rp
6.01 trillion last year from Rp 1.12 trillion in 1997.

The company's foreign exchange loss also rose to Rp 3.5
trillion from 1.2 trillion in 1997, due to the sharp depreciation
of the rupiah against the U.S. dollar.

PLN has been severely battered by the economic crisis, as most
of its costs, including fuel and power supplies from independent
power producers (IPPs), are in dollars, while electricity sales
are in rupiah.

The company said the cost to buy fuel and natural gas amounted
to Rp 9.40 trillion last year, a 117 percent increase from Rp
4.33 trillion a year earlier. The cost of buying electricity from
IPPs rose to Rp 1.88 trillion from Rp 325.16 billion in the
previous year

The company said it received a government subsidy of Rp 1.9
trillion last year.

The company has refused to buy power supplies from IPPs in the
dollar as stipulated in the contract.

PLN is trying to negotiate power purchase agreements (PPA)
with 10 IPPs. The company has requested power prices be lowered
to about 4 U.S. cents, from between 6 cents and 8 cents under the
contracts.

Earlier, PLN president Adhi Satriya said the renegotiation may
take between one year to two years to complete. (jsk)