Provincial administration to be given authority over power policies

The House of Representatives (DPR) and the government which are deliberating the country?s new power bill agreed on Monday that the provincial administration should be given authority to decide its own power policies.

But the provincial administration?s power policies must go in line with those issued by the central government, according to Minister of Energy and Mineral Resources Purnomo Yusgiantoro and DPR?s Commission VIII in charge of energy and mineral resources.

According to the bill, the policies to be decided by the provincial administration will deal, among others, with power supply and demand, and power transmission and distribution.

DPR is expected to approve the government-sponsored power bill in March.

The bill, which is to replace the law issued in 1985, aims to introduce a free market system to the country?s power industry, thus ending the monopoly held by the state electricity company PT PLN.

Under the bill the power generation and retailing sectors will be fully liberalized so that all companies would be free to do business in those sectors.

The bill stipulates however that government will still control the transmission and distribution of power. (Leo)