Government to form electricity commission to curb cartel practices

The government and the state owned electricity company PLN have guaranteed that there won?t be cartel practices in the country?s electricity sector despite the introduction of more liberal electricity law some time next year, Kompas daily reported on Friday.

PLN?s president director Eddie Widiono said in Jakarta on Thursday that the government would establish Electricity Market Supervisory Commission (BPPTL) to ensure fair practices in electricity generation, transmission and distribution activities.

He said members of the commission, which would be established a year following the introduction of the new electricity law, would come from independent institutions and should be approved by the House of Representatives to ensure that the commission would be able to make fair and impartial decision in its activities.

"BPPTL should be able to make a quick response to some changes that could affect the power prices. Members of the commission should therefore be independent and have no vested interests," he said in a press conference held following his meeting with representatives of energy and electricity companies.

The House is currently deliberating the government-proposed electricity law to remove PLN?s monopoly in power generation, transmission and distribution activities. The new introduction of the new law will therefore pave the way for the entry of private companies in electricity-related business activities. (*)