ID :
13835
Fri, 07/25/2008 - 21:12
Auther :

PLN MUST INCREASE FINANCIAL CAPABILITY: LEGISLATOR

Jakarta, July 25 (ANTARA) - State-owned electricity company PLN must increase its financial capability in order to be able to purchase the primary energy it needs to step up its power supply capacity, a legislator said.

"PLN's plan to raise the electricity tariff for industries is proof that the real problem behind the present electricity supply shortages is not the limited capacity of the company's power plants," Alvin Lie of the House of Representatives (DPR)'s Commission VII which deals with energy affairs said here on Friday.

"The real problem lies with PLN's financial capability to purchase fuel oils, coal and gas," he said.

He said if PLN's financial capability was not boosted, the government's plan to shift industries' days-off to days other than Saturday and Sunday would be useless. "The shifting of the days-off will not solve the problem the PLN is now facing," he added.

PLN is currently considering an increase in the power tariffs for type three industrial customers (I3) and type three business customers (B3) which total 8,000.

The plan to increase the tariff was intended to prevent rotating power cuts as a result of the wide gap between national power production capacity and the increase in demand for electricity.

PLN is planning to increase its power tariff for industries from the present Rp600 per kWh to the economic production level said to reach Rp1,300 per kWh.

The electricity tariff increase will follow the fluctuations in fuel oil and coal prices.

PLN will not force itself to raise the tariff but will discuss it based on business considerations with industries where the Indonesian Chamber of Commerce and Industry (Kadin) will serve as a facilitator.

Executive Director of ReforMiner Pri Agung Rakhmanto said recently that raising the electricity tariff now would not solve the problem of rotating power cuts.

Rakhamnto said the electricity crisis being faced now was actually a combination of problems, including financial difficulties, damage to power plants and the absence of assured primary energy sources.


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