PLN labor federation to file legal suit against Paiton I
Wednesday, December 20 2000 - 04:00 AM WIB
The labor federation of the state-owned electricity company PLN plans to file a legal suit against independent power producer Paiton I at the Jakarta district court in January next year, the evening Suara Pembaruan daily reported.
The paper quoted head of the PLN labor grouping Hasrin Hutabara as saying that the move was aimed at helping the company to obtain cheaper power price of US$0.04 per Kwh from Paiton I, so that the public could also have a lower electricity tariff from PLN.
Hasrin said that the $0.07 per Kwh power price set by Paiton I was too high.
He also said that based on audit made by the Supreme Audit Agency (BPK), the cost of the Paiton I power project was too high compared to similar other projects overseas.
PLN is currently in a negotiation process with several independent power producers (IPPs) including Paiton I to obtain a lower power price. (*)