PLN buys electricity from timber companies

State owned electricity company PLN has agreed to buy power supply from two timber companies and a cement producer in South Kalimantan to help cope with the shortage of the electricity supply in South and Central Kalimantan provinces, Kompas reported on Thursday.

Ari Agus Salim, the general manager of PLN's branch for South and Central Kalimantan, said in Banjarmasin on Wednesday that the company's decision to purchase the power supply from three private companies was part of the short-term approaches to cope with the electricity shortage in the areas.

"The power supply to be bought from private companies would be quite cheaper. We buy the power at between Rp 250 to Rp 350 per kilowatt hour (kWh). We sell it about Rp 600 kWh," he said. He did not name the three companies.

He said that at present, the daily power supply for the two provinces reached only between 250 MW and 255 MW, while the power usage during peak hours could reach about 240 MW. "With the power reserve of less than 20 percent, the power supply in two provinces has been in critical condition," he said

According to him, a number of steam power plants are currently being built in the two provinces. "When the new power plants begin operation in 2007, PLN will receive additional supply of about 73 MW, sufficient enough to cope with the power shortage" he said. (*)