PLN to set private electricity prices

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)