PLN to set private electricity prices

JAKARTA (JP): The government has decided to give full authority to the state-owned electricity company PT Perusahaan Listrik Negara (PLN) to negotiate tariffs for private generators, a senior official said.

Director General of Electricity and Energy Development of the Ministry of Mines and Energy Zuhal said on Saturday that the electricity prices, which used to be negotiated by the government, will now be negotiated only by PT PLN.

"The ruling was stipulated in a decree of the minister of mines and energy which was released last week," Zuhal was quoted by Bisnis Indonesia daily as saying.

He said that the new ruling is aimed at improving PT PLN's performance.

PT PLN set up on Oct. 3 two new subsidiaries which will manage the operation of PLN's power plants in Java and Bali.

Zuhal said that the government will also set up a general committee in charge of dealing with private generators in a bid to improve the power purchasing agreement system.

The government has so far approved the electricity price deals for three private electricity projects, comprising coal-fired power plants: Paiton I which generates 2 x 615 megawatts (MW), Paiton II (2 x 610 MW), both in East Java, and Tanjung Jati B (2 x 660 MW) in Central Java.

Meanwhile, Minister of Mines and Energy I.B. Sudjana will soon announce the winner of the tender for the development of the coal-fired power plant Tanjung Jati A in Central Java.

The tender for the development of Tanjung Jati A power plant which will have capacity of 2 x 600 MW, attracted several bidders, including the consortia of Bakrie and Toyomenka; National Power and Catur Daya; Asea Brown Bovery; and Sumitomo.

Zuhal said that the government will award the company which offers the lowest and most realistic price.(04)