PLN extends 2005 loss on fuel price

State electricity firm PLN booked a net loss of Rp.4.9 trillion (US$ = Rp.8.900) in 2005, more than double previous year?s net loss of Rp.2 trillion.

The company?s huge loss was due to steeply increasing expenditure for fuel and oil to Rp.37.3 trillion in 2005 versus Rp.24.5 trillion a year ago-period, The Company?s balance sheet and income statement posted in national media on Tuesday showed. Power purchase from power producers also rose to Rp.13.6 trillion from Rp.12 trillion.

The company?s revenue from electricity sales rose to Rp.63 trillion in 2005 versus 58 trillion in previous year and revenue from electricity subsidy rose to Rp.12.5 trillion from Rp.3.5 trillion a year ago.

The increasing crude price has cost PLN dearly as majority of the company?s power plants are fuel-fired.

The company is planning to embark on massive coal-fired power plants development to reduce its heavy dependency on fuel. (alex)