PLN insists to buy electricity at price below 5 cent per kWh

State electricity company PLN has insisted to buy electricity at a price below US-cent 5 per kWh from independent power producer Paiton Energy, the owner of the Paiton I power plant in East Java.

PLN?s president Eddie Widiono said in Jakarta on Friday that the state electricity company?s position to stick to the price level had partly contributed to the failure in the negotiation with Paiton.

?Government sticks to its position to buy at below five US-cent while Paiton sees the level is still too low,? he was quoted as saying by Bisnis Indonesia.

He, however, said that the new options proposed by PLN could break the deadlock in the negotiation process with the American power company.

Eddie earlier said that PLN had proposed new options to Team Keppres, the government?s special team which handles the negotiation in settling PLN?s debt payment to Paiton and several other independent power producers.(*)