PLN not ready to surrender monopoly in downstream sector

Although many activities related to the generation of electricity have been entrusted to private companies, state owned electricity company Perusahaan Listrik Negara (PLN) has acknowledged that it will take a long time for the company to relinquish its exclusive rights in the distribution and sales of the electricity to the public.

"The monopoly in almost all activities in upstream activities has been removed to encourage more participation from private companies. But in the downstream such as distribution, the monopoly is still maintained as it involves larger part of the public," PLN?s director for sales and distribution Tunggono said in Jakarta on Monday.

In his address in the opening of an electricity workshop, Tunggono said that although PLN technically maintained the monopoly in the downstream sector, many activities in the retail and distribution had been entrusted to third parties.

He said that the distribution of electricity in certain areas had been carried out by PLN?independent business units, which can compete one another. " It indicates that there is a gradual process in the deregulation in the downstream sector," he added.

Besides encouraging competition, the establishment of independent business units in the distribution activities would also reduce PLN?s burden and responsibility "For example, if there is a fire, PLN will not be the only party to blame on," he added. (*)