PLN's Future Competitors
Tuesday, 30 May, 2006 | 14:38 WIB

Tempo Interactive, Jakarta: The government will form several new electricity companies. These State-owned enterprises will operate in distribution and generating, not in the transmission. The government's plan will automatically end the monopoly of PT PLN (State Electricity Company) in distribution. Previously the government opened the generating sector.

The government's plan is included in the new Electricity Bill. “The purpose is efficiency in electricity,” said Yogo Pratomo, Director General of Electricity and Energy Usage at the Department of Energy and Mineral Resources, after delivering the bill to the House of Representatives (DPR) yesterday.

Before, the Constitution Court annulled Decree No. 20/2002 on Electricity in December 2004. Three Articles in the Decree were rejected, Article 16 on the separation of the electricity supply enterprises, Article 17 on electricity enterprises competitor, and Article 68 on the change in electricity power enterprises.

According to Yogo, the composition of the new bill refers to the 1945 Constitution Article 33 so that there is no more argument. Competitors for PLN has actually been regulated in Decree No.20/2002. However, unlike Decree No.20/2002 which states the competition is transparent, this Bill regulates PLN's competitors be State-owned enterprises, not the private sector.

The Minister of Energy and Mineral Resources, Purnomo Yusgiantoro said, it is expected that with the new bill, electricity distribution can be smooth, have quality, and easy to obtain with a fair price.

Muhamad Fasabeni
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