Electricity Bill may be passed into Law next month

Indonesia may have new Electricity Law next month if the House of Representatives pass the Bill into Law, a government official said on Thursday.

?If deliberations proceed smoothly, the Electricity Bill may be passed into Law next month,? Jacobus Purwono, Director General of Electricity at the Ministry of Energy and Mineral Resources told reporters.

Purwono said that under the new Law, state electricity firm PLN as the holder of electricity right, may set up regional tariff, charging customers differently for different areas. The regional tariff, he said, must be approved by parliament.

The Bill, he said, will also divide authority between central and regional government, especially on electricity supply in the areas where PLN has yet establish grid or off-grid area.

Under the Bill, private sector could only act as IPP for PLN in on-grid areas. In the case of off-grid areas, private sector could develop their own power plant and transmission grid.

Government has submitted the Electricity Bill after the previous bill was annulled by Constitutional Court in 2002. (Kanti)