PLN to boost sales revenue next year

State owned electricity company PLN has set a target to increase sales revenue next year to Rp 99.6 trillion from about Rp 61 trillion this year in a bid to cope with the increase in fuel prices, Kompas reported on Thursday.

PLN president director Eddie Widiono said in Jakarta on Wednesday that the increase in the sales target had been approved during the company's shareholders meeting recently.

Eddie said that the hefty increase in the sales target was important to help the company cope with the rising fuel costs. "This year PLN suffered a loss of about Rp 14 trillion as the impact of the increase in fuel price to Rp 4,700 per litter from Rp 2,200 per litter," he said, adding that beginning October, PLN is required to buy diesel oil at market price of Rp 4,700.

PLN is proposing a number of scenarios to the government in deciding the electricity tariffs for 2006. "We want to know first how much the price of diesel oil we should buy next year and how much the subsidy we will receive. The percentage of the tariff increase will depend much on the amount of the subsidy from the government," he said. (*)