Headlines

NTB PLN Suffers Rp 3 B Losses

The loss is inflicted by electricity bill arrears.

Selasa, 20 Oktober 2009, 15:21 WIB
Amril Amarullah
A technician is seen fixing the power network in Jakarta. (PLN Jawa-Bali)

VIVAnews - The state-owned electricity firm PLN of West Nusa Tenggara (NTB) has been suffering loss valuing Rp 3 billion (US$318,979) in mid 2009. The loss is inflicted by the customers’ electricity bill arrears, which have also affected the company’s performance.

This somehow explains the power cut that often occurs, especially in Lombok Island. According to PLN’s general manager for NTB Muhammad Sofyan, the amount of customers’ electricity bill arrears in 2008 was up to Rp 2 billion, which resulted in the increasing loss in 2009.

“This has influenced NTB PLN’s performance. We also have to spend money on diesel-fueled power generator maintenance,” Sofyan said to the reporters in Mataram on Tuesday, October 20.

He assumed the rise in electricity use is normal because there is also an improvement in the people’s economic life. The number of electricity consumers in NTB has been escalating, following the establishment of new businesses. Meanwhile, the power of the electricity generator keeps deteriorating due to daily operation.

The cost of electricity maintenance in NTB which uses diesel-fueled power generator is assumed to have contributed to PLN’s financial losses.

The production of 1 kilo watt per hour (kwh) costs Rp 2,000, while PLN’s average selling price is Rp 657 per kwh. NTB PLN will reportedly keep trying to save the expenses in order to improve its financial structure.

One of the company’s strategies is replacing diesel fuel with marine fuel oil (MFO) for the power generators. The use of MFO could save the expenses up to Rp 178 billion while PLN spends at least Rp 1.7 trillion on production each year.

PLN has also provided new diesel-fueled machines to replace the broken ones. Within the past two months, PLN has relocated 5 megawatt generators. “In 2010, there will be additional 35 megawatt rented machines, 15 megawatt in Lombok, 10 megawatt in Sumbawa and 10 megawatt in Bima,” he said.

--

Laporan: Edy Gustan | Mataram
Translated by: Nataya Ermanti

• VIVAnews
Rating
Comment
There are currently no comments to display on this article.
Send Comment
You have to login to post comments
OrĀ