PT Perusahaan Listrik Negara (PLN) agreed on a Reference Coal Price (HBA) as one of the determining components of electricity rates, together with the US dollar exchange rate, Indonesian Crude Price (ICP) and inflation.
This is because currently, most of the power plants used by PLN use coal through Steam Power Plants (PLTU). So, according to PLN, the inclusion of HBA as a determining component of electricity rates is reasonable.
“That is to get a more realistic price. Electricity rates do not increase immediately. Only the procurement has gone up. Electricity rates are still determined by the government through regulations, even though HBA is included as a component,” said Head of the PLN Corporate Communications Unit, I Made Suprateka to Kontan.co.id, Monday (29/1).
If the procurement of raw materials increases, said Made, his party requests that the government apply the price of coal through a cost plus margin for domestic generators (DMO). So that the purchase of coal raw materials does not follow the rising price of coal, which is US$ 95.54 per ton.
With the determination of the DMO coal for the power plant, said Made, electricity rates can be adjusted and can be reduced.
“First, with DMO there is a quantity given to PLN. Second, there is a suitability that can make electricity prices more affordable,” he stated.
Meanwhile, Executive Director of the Institute Energy for Essential Services Reform (IESR). Fabby Tumiwa said that the government’s plan to include a component of the increase in coal prices in the tariff adjustment was inappropriate. The reason is that the price of coal contracted with PLN does not change from time to time and PLN does not buy coal from the spot market and does not import it. But, long-term contracts with local manufacturers.
In addition, the price of primary energy is a risk that must be managed by PLN, and the risk of coal and fuel is different. PLN should be able to manage the risk of coal prices through contracts with producers/mine owners.
“If the Minister of Energy and Mineral Resources includes the HBA in the adjusted tariff, then the risks that should be managed by PLN will be borne by electricity customers,” he told KONTAN, Monday (29/1).
This policy, said Fabby, is actually more profitable for coal producers, and does not provide incentives to PLN. To carry out fuel efficiency and efforts to control primary energy costs.
“The Ministry of Energy and Mineral Resources has also been asked to transparently announce the calculation of periodic adjustment rates to the public. The HBA is intended to calculate government revenue from royalties and taxes,” he said.
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