PLN seeks clarification over status of power plants in industrial estates

State-owned electricity firm PT PLN seeks clarification to the government over the status of power plants run by private power firms in industrial estates following the recent move by the Constitutional Court to annul two chapters in the current Electricity Law, Kontan reported on Monday.

The paper quoted PLN Spokesman I Made Suprateka as saying that the Court?s ruling effectively requires state control in power plant projects run by private entities such as by determining the electricity tariff. PLN, however, has not been involved in determining the tariff of electricity produced by power plants located in industrial estates as the private entities developing the plants determine their own tariff following coordinating with local government and legislative council. The private entities also develop their own transmission line to distribute electricity to tenants in the industrial estates, and in case there?s excess power it is distributed to PLN.

Suprateka said that the government must clarify the status of the power plants in the industrial estates as the Constitutional Court?s ruling requires state control over private-owned power plant projects. The control can be made by PLN as the representatives of the state or other state-owned firm.

The paper said that clarification is also required over power plant projects located in remote regions where the operators directly sells the output to household consumers without the role of PLN. (*)