PLN workers union oppose high feed-in tariff for micro-hydro plants

State-owned electricity company PT PLN workers union protested a government regulation requiring the company to buy electricity from micro-hydro power plants at high tariff as it would undermine the utility?s financial condition.

The Ministry of Energy and Mineral Resources has issued Ministerial Regulation No 19/2015, setting the feed-in tariffs for micro-hydro power plants with capacity of less than 10 MW at Rp 1,560-Rp 2,080 per kWh, which are much higher than the selling price of electricity by PLN to consumers at Rp 450-1,350 per kWh. The policy is part of efforts to lure investors to develop micro-hydro power plants particularly in remote regions.

PLN workers union Jumadi Abda was quoted by Kontan as saying Tuesday that the company opposed to follow the ministerial regulation. ?PLN?s finances will be burdened if the company is forced to buy micro-hydro electricity at such expensive price,? he said.

He said that a promise by the government to provide subsidy for PLN remains controversial as this translates to the use of the people?s money for power plant investors. He added that the Ministry of Energy and Mineral Resources has yet to be able to determine the size of subsidy to be given to PLN. (*)