Local Coal for Lower Electricity Price

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JAKARTA-KONTAN.CO.ID. The State own electricity firm PLN is still requesting the government for applying the price of coal by cost plus margin for domestic power plants. By this plan PLN can purchase local coal materials and does not follow the prince of reference coal (HBA) which is rising at US 95.54 per ton. With the determination of DMO local coal for domestic power plans, the electricity price can be adjusted and can go down.

Executive Director of Institute for Essential Services Reform said using the cost plus margin formula will enable to PLN to buy local coal with cheaper price, and it can make the electricity to go down. However, he said government should create a specific formula for margin values to local coal price as not all types of coal are suitable with the power plants.

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