Power purchase rates of 6 IPPs will be lower than Paiton?s

State electricity company PLN said on Tuesday the price of electricity to be supplied by six independent power producers which nearly complete negotiations with the firm will be lower than the rate it had agreed with power producers PT Paiton Energy and PT Jawa Power.

PLN President Director Eddie Widiono said the price of electricity to be purchased from Paiton Energy and Jawa Power from Paiton-I and Paiton-II plants was comparably the highest.

?This is because the two had also built joint facilities,? Eddie told reporters after attending a hearing with a House commission in charge of energy and mineral resources.

Late last month, PLN reached preliminary agreements for 30-year rates for power from Paiton-I and Paiton-II plants. PLN agreed to pay Jawa Power and Paiton Energy 4.8-4.9 cents a kilowatt-hour for power from the plants. Final settlement of the rates is expected in three to four months.

Eddie did not mention the names of the six independent power producers. He only said that they included those to be involved in power projects in Gunung Salak (West Java), East Palembang (South Sumatra) and Sibolga (North Sumatra).

?Our negotiations with them are almost finished. But once our negotiations are completed, we shall submit negotiation results to the government for approval,? Eddi said. (leo)