PLN Threatened by Energy Crisis
Monday, 21. January 2008, 12:19:47
The government is being urged to make a political decision in connection with PT PLN (the State Electricity Company) as soon as possible.
As a result of oil prices jumping to above US$90 per barrel, PLN is having difficulties in fulfilling primary energy fuel demands from its power plants.
Clarity as regards the government's attitude is also needed.
“Whether to raise electricity subsidies or to give the 'green light' for increases in basic electricity tariffs,” Alvin Lie, House's Energy Commission member, told Tempo in Jakarta yesterday (20/1).
In the run-up to the 2009 General Election, he said he suspected that the government would prefer not to raise electricity tariffs.
So, said Alvin, “The government needs to increase electricity subsidies.”
Since 2007, crude oil prices on world markets have been increasing.
Up until last weekend, prices remained at a level of US$90.57 per barrel.
The price increases jumps caused last year's electricity subsidies to rise from Rp29.4 trillion to Rp43.3 trillion.
The prices of the primary energies, gas and coal—which are also PLN's power plant fuels—have also gone up in line with world oil prices.
readmore...
As a result of oil prices jumping to above US$90 per barrel, PLN is having difficulties in fulfilling primary energy fuel demands from its power plants.
Clarity as regards the government's attitude is also needed.
“Whether to raise electricity subsidies or to give the 'green light' for increases in basic electricity tariffs,” Alvin Lie, House's Energy Commission member, told Tempo in Jakarta yesterday (20/1).
In the run-up to the 2009 General Election, he said he suspected that the government would prefer not to raise electricity tariffs.
So, said Alvin, “The government needs to increase electricity subsidies.”
Since 2007, crude oil prices on world markets have been increasing.
Up until last weekend, prices remained at a level of US$90.57 per barrel.
The price increases jumps caused last year's electricity subsidies to rise from Rp29.4 trillion to Rp43.3 trillion.
The prices of the primary energies, gas and coal—which are also PLN's power plant fuels—have also gone up in line with world oil prices.
readmore...
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