PLN expected to suffer loss of Rp 322 billion in North Sumatera, Aceh
Monday, November 22 2004 - 01:56 AM WIB
The branch office of the state owned electricity firm PLN covering North Sumatera and Aceh (PLN Sumut and Aceh) is expected to suffer a loss of at least Rp 322 billion this year, a slight decline from Rp 462 billion in 2003, Neraca daily reported on Monday.
The General Manager of PLN Sumut and Aceh, Supriyanto said in Jakarta recently that the loss occurred because the price of the electricity company charged on customers was still far below than the overhead costs.
At present PLN Sumut and Aceh sells its electricity at average price of Rp 585 per kilo Watt hour (kWh), far below than its overhead costs which reach Rp 742 per kWh, Supriyanto said.
According to him, PLN Sumut and Aceh should book sales revenue of between Rp 2.9 trillion to Rp 3 trillion a year to be able to break even. "At present, sales revenue is about Rp 2.6 trillion, resulting in deficit of Rp 322 billion," he added.
PLN Sumut and Aceh has 2.1 million customers, about 94 percent of which comprise of household customers. (*)