PLN and two power plant operators agree on tariff cut

State owned electricity company PLN and two power plant operators PLTA Asahan hydro power plant and PLTP Sibanyak geothermal power plant, both based in North Sumatra, have reached an agreement on the restructuring of the prices of the electricity that will be bought by PLN, Bisnis Indonesia daily reported on Monday.

In addition to the agreement on the tariff reduction from the two companies, PLN?s negotiation team had also reached an agreement on the acquisition of the West Java-based PLTP Cibuni geothermal power plant by PLN?s education and welfare foundation YPK from its investor PT Yala Teknosa Geothermal.

The head of PLN?s negotiation team, Juanda Nugraha, said that the tariff renegotiations and the acquisition would help PLN to save about US$300 million. "The result of the negotiations had been reported to the government?s team for approval," he added.

The result of the renegotiations included the reduction in the electricity tariff from the 180-MW PLTA Asahan to US$0.046 per kWh from US$0.07 per kWh. This can help PLN to save US$0.024 per kWh. The price of electricity from the 120-MW PLTP Sibanyak is reduced to US$0.047 per kWh from US$0.07 per kWh, saving US$0.023 per kWh. The electricity tariff from PLTP Cibuni has been also reduced to 0.044 per kWh from US$0.07 kWh.

Juanda said that the team was now still renegotiating the electricity tariffs to six other power plants including PLTP Wayang Windu geothermal power plant (110 MW), PLTP Serulak (6 x 55 MW), PLTP Kemojang) 2 x 30 MW), Bedugul (2 x 55 MW), PLTP Karaha Bodas (2 x 110 MW and PLTP Dieng Patuha (60 MW). (*)