PLN wants to by private electricity at $0.04 per kWh
Monday, June 26 2000 - 04:00 AM WIB
State electricity firm PT PLN's operation director Tunggono hinted that the company would be willing to buy private electricity supplies at US$0.04 per Kilowatt-hour (KWh).
Tunggono said in Makassar over the weekend that PLN could not buy private electricity at above that level because based on the new electricity tariff, PLN sold its electricity at Rp 280 per kWh.
"It means that with the rupiah's exchange rate of Rp 7,000 against the dollar, our electricity prices stay at $0.04 per kWh," Tunggono said.
"Frankly speaking, a number of private electricity companies currently renegotiating with PLN dare to offer their electricity at $0.04 per kWh," he added, without mentioning the companies.
He noted that PLN's operating cost reached Rp 24 trillion per annum, while its income from selling electricity, with the new tariffs, was expected to reach Rp 19 trillion.
"So, PLN will receives a subsidy of Rp 5 trillion from the government," he said.
Nevertheless, Tunggono said PLN would continue to buy private electricity. PLN stopped buying private electricity for the time being only from independent power producers in Java, where PLN's electricity supplies exceeded the demand level. Besides, he noted that the offering price of private electricity in Java was still too expensive for PLN to take. (*)