House probably to pass power bill into law next week

The House of Representatives (DPR) will very likely pass into law next week the long-debated power bill which will end the monopoly held by state-owned electricity company PLN in the country?s power sector.

DPR member Julius Bobo told Petromindo.Com on Wednesday it had planned to hold a plenary session on August 28 in which House factions would expectedly air their full support to the bill. DPR?s Commission VIII, which is in charge of energy and mineral resources, has deliberated the bill over one year ago immediately after the government submitted it to the House.

?I think, judging from the latest development within the House, it will pass the bill into law on August 28,? Julius said.

Julius, who is Commission VIII member, said it held a closed door meeting on Tuesday to finalize the electricity bill. On Wednesday (today), a small team of the commission will finalize the wording of the bill, the legislator said.

The power bill stipulates that all power producers including PLN will sell power to the public through a bidding system. The cheapest power will be allowed to enter the power grid first, and all power grids will be operated by the so-called Power Market Agency which will be formed by the government.

The power bill was part of the government?s plan to restructure the country?s power industry by lifting PLN?s monopoly on that sector. So far, private power producers have been obliged to sell their electricity to PLN which controls power distribution and transmission networks.

Moreover, existing regulations allow independent power producers from operating in Indonesia only if they have signed a purchase agreement with PLN. (leo)