Head of the Bureau of Communications, Public Information Service and Cooperation of the Energy and Mineral Resources (ESDM) Ministry Sujatmiko said the decline in BPP indicated greater efficiency in the provision of electricity.
The 2016, BPP level would serve as the power purchasing reference by PLN for the period of April 1, 2017 to March 31, 2018, Sujatmiko said here on Tuesday.
The 2016 BPP was set based on the decision of the ESDM Ministry No.1404 K/20/MEM/2017, signed by ESDM Minister Ignasius Jonan on March 27 in 2017.
"This BPP is a result of an audit by the Supreme Audit Agency (BPK) which is used by PLN as the reference. The decline in BPP is a result of efficiency in the provision of electricity," Jonan said.
Sujatmiko said, the provision is more efficient as PLN has used less diesel power plants fueled with expensive oil.
In addition the use of coal and gas to fuel power pants instead of oil and improved performance of power plants contributed to the cost efficiency, he said.
The decision of the ESDM Minister No 1404 constituted a derivative of the regulation of the ESDM Minister No 24 in 2017 on the mechanism of determining BPP of power generating plants of PT PLN signed on 23 March, 2017.
The BPP is only the cost of power provision at the power plant not including cost of transmission.
"BPP is calculated based on the principles of effectiveness, efficiency and accountability. BPP is used as a reference for the power purchasing price from generating plants in line with the law. With the decline in the BPP, PLN is expected to sell power to the public at lower price," Minister Jonan said.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
