PLN to ask for compensation for delay in operation of new power plants

State owned power utility company PT Perusahaan Listrik Negara (PLN) will ask for compensation from contractors for the delay in the operation of several power plants built under the Phase One 10,000 MW power plant development program, Detik reported.

PLN's president Dahlan Iskan said during a visit in Ponorogo, East Java, last week that the state electricity company had the right to ask for compensation if the contractors were unable to complete the construction according to the schedules.

?It has been stated in the contract that if there is a delay in the operation, PLN has the right to ask for compensation,? Dahlan said.

He explained that as a result of the delay in the completion of the projects, PLN would not be able to reduce the use of the costly fuel diesel according to the initial plan.

"If the new power plants could be operated according to schedules, PLN will be able to reduce the use of diesel oil. The delay means the diesel oil use will remain high,? he added.

Dahlan did not mention which of the new power plants were being delayed, but said that due to the delay in their operation, the use of diesel oil had grown to between 1.3 million and 1.4 million kiloliters this year. (*)