PLN to scrap diesel power plants in North Sumatra

Public utility PT Perusahaan Listrik Negara (PLN) plans to deactivate all its diesel power plants in North Sumatra by June 2015 as it will use gas and coal-fired power plants to supply power for the province, Kompas.com reported on Wednesday.

PLN?s President Director Sofyan Basir said the measure is part of PLNs efficiecy program which in the end plan to cut down the government?s subsidy for electricity.

?PLN?s spending for diesel oil in North Sumatra amounts to Rp 17 trillion per year,? Sofyan said.

PLN also plans to implement a similar program in Kalimantan regions, he said.

?Electricity subsidy reached Rp 105 trillion last year. This year, the subsidy is targeted at Rp 70 trillion, plus Rp 10 trillion carried over from the previous years,? he said. (*)