PLN denies reports on selling price of Tanjung Jati B power plant

State-owned electricity company PT Perusahaan Listrik Negara (PLN) has denied reports that the average selling price of power produced by the newly operated Tanjung Jati B power plant had exceeded 6 US$ cent per kilowatt hour (kWh).

PLN's spokesman Muljo Adji said in Jakarta Thursday that the average selling price of the power produced by the coal-fired Tanjung Jati B power plant in Jepara, Central Java, which was officially inaugurated by President Susilo Bambang Yudhoyono on Saturday was only 4.1 US$ cent not 6 US$ cent as reported by the press.

"The average price of the electricity produced by the Tanjung Jati B is only 4.1 US$ cent during the 23-year contract, not 6 US$ cent," he said, adding that during the 23-year contract, the selling price ranged between 3.86 to 5.6 US$ cent per kWh. "The price will decline sharply after 12 years of the plant's operation," he said.

Earlier reports said that the average price of the electricity produced by the Tanjung Jati B power plant reached 6 U.S. cent per kWh, far exceeding than the price of the electricity produced by similar coal-fired power plants.

One of the power generating unit of coal-fired power plant Tanjung Jati B started connection with the Java-Bali grid on April, 2006.

The power plant located in Jepara, Central Java has two power units each with the capacity of 660 MW. It is owned by PT Central Java Power (CJP), which is controlled by Japanese trading house Sumitomo.

CJP has entered into a 23-year lease contract with PLN, under which PLN is responsible for the operation and maintenance of the power plant during the lease period. (godang)