PLN allows regional offices to sign power purchase contracts

State owned electricity company PT Perusahaan Listrik Negara (PLN) has given a greater authority for its regional units to purchase power as part of the company's "decentralization" program, Media Indonesia reported Saturday.

PLN?s director Eddie Widiono said in Jakarta Friday that in line with the decentralization program, PLN's headquarters would in the future act as a supervisor in power purchasing, with its regional units having an authority to sign power purchasing contracts with independent power producers (IPP) for more than one year term.

Eddie said that the autonomy program had been implemented with the signing of the contract to purchase power from the 2x2.295 kWh Telanai Banding Agung micro-hydro power plant in Ogan Komering Ulu Selatan, South Sumatra.

The contract was signed on Friday by Dodo Rahmat, the General Manager of PLN's South Sumatra, Jambi and Bengkulu Regional Unit, and Ahmad Bakri Putra, the President Director of PT Lumada Sapta Mitra, the owner of the power plant.

?Under the contract, the management of PLN's South Sumatra, Jambi and Bengkulu regional unit is fully responsible for the availability of power in the region,? Eddie said. (*)