PLN finally agrees to follow MEMR ruling on mini-hydro power tariff

State-owned electricity firm PT PLN has finally agreed to follow the Ministry of Energy and Mineral Resources (MEMR) regulation on tariff of electricity produced by mini-hydro power plants owned by independent power producers (IPPs), Kontan reported.

The MEMR regulation sets the power tariff at US$0.09-0.12 per kWh, which PLN claimed would cause the company to suffer losses as they?re higher than the electricity selling price of PLN.

Director General of New and Renewable Energy at MEMR, Rida Mulyana was quoted by Kontan as saying that the ministry and PLN have settled disagreement over the power tariff.

Rida said that not all mini-hydro power projects will use the MEMR tariff scheme as the IPPs would have to first report to the ministry, which would decide the tariff. He added that at the aforementioned tariff, PLN in certain regions such as in North Sumatra will make profit. He said that the government would provide subsidy for PLN in regions where it suffers losses. (*)