PLN offers new options in settling debt payment

State electricity company PLN has offered new options in settling its financial obligations to independent power producer PT Paiton Energy, the owner of the Paiton I power plant in East Java, Koran Tempo reported on Friday.

The new options have been submitted to Team Kepres, the government?s special team which handles the negotiation in settling PLN?s debt payment to several independent power producers, PLN?s president Eddie Widiono said on Thursday.

Eddie said that parts of the arrears would be paid to Paiton in installments under one of the options submitted to the team. The other option, according to Edie, is to allow Paiton to build a new power plant or to extend the purchase contracts with the independent power company.

When asked if PLN offered to buy electricity from Paiton at between 4.8 and 4.9 U.S. cent per kWh, Eddie refused to answer. ?What we want is the price should be lower than 5 U.S. cent per kWh.

He also denied to comment on reports that PLN offered Paiton to increase generation capacity by 700 megawatts if the latter agreed to write off the state electricity?s all arrears payment.

Commenting on reports that the government planned to complete the negotiation process with Paiton before President Megawati Sukarnoputri visits the United States later this month, he said, ?negotiations should be fast but should not be sped up.?(*)