http://www.xe.com/news/2009-09-07%2008:17:00.0/655277.htm?c=1&t=
JAKARTA- Indonesia's parliament approved a new electricity law on Tuesday, a member of parliament said, revoking the state electricity firm's monopoly and allowing central and regional governments to issue power permits.
The new law may also give the central and local governments more power to set tariffs in a country where electricity is heavily subsidised, which discourages efficient usage.
Tjatur Septo Edy, a member of parliament's energy commission, told reporters on Monday that the draft legislation would be presented to parliament on Tuesday and would likely be approved. The legislation could still be amended.
Growth in Indonesia, Southeast Asia's biggest economy, is hampered by poor infrastructure including inadequate power supplies. The country suffers from blackouts, and many remote areas are not even connected to the national grid.
With power demand expected to grow by around 10 percent a year, experts say additional capacity is needed to prevent electricity shortages in the coming years and beyond.
The removal of state firm PT Perusahaan Listrik Negara's (PLN) monopoly would allow competition and could encourage some of Indonesia's more prosperous, resources-rich provinces to embark on new power projects for local use.
Indonesia's parliament had previously tried to end PLN's selling monopoly.
In 2002, it approved a new electricity law ending the selling monopoly of PLN, but two years later, the constitutional court struck down the law, saying that generation and distribution should be controlled by the government because of its importance.
Here are some key points in the draft electricity law, a copy of which was seen by Reuters:
* The central government and regional governments are in charge of providing electricity. * The central government is authorised to decide electricity policy, regulation, and electricity tariffs.
* The provincial governments are authorised to issue business permits for power in their respective regions.
* The local districts, or regencies, also have the authority to issue permits in their respective areas.
* Electricity generation and distribution for public consumption can be carried out by a state enterprise, a state regional company, private companies, and co-operatives.
* State enterprises will have first right to provide electricity for the public.
* The central government has the authority to decide electricity tariffs for consumers, to be approved by parliament.
* The provincial government has the authority to decide on electricity tariffs, based on agreement from members of the regional parliament.
* Electricity tariff for consumers can vary between regions.
(*)
JAKARTA- Indonesia's parliament approved a new electricity law on Tuesday, a member of parliament said, revoking the state electricity firm's monopoly and allowing central and regional governments to issue power permits.
The new law may also give the central and local governments more power to set tariffs in a country where electricity is heavily subsidised, which discourages efficient usage.
Tjatur Septo Edy, a member of parliament's energy commission, told reporters on Monday that the draft legislation would be presented to parliament on Tuesday and would likely be approved. The legislation could still be amended.
Growth in Indonesia, Southeast Asia's biggest economy, is hampered by poor infrastructure including inadequate power supplies. The country suffers from blackouts, and many remote areas are not even connected to the national grid.
With power demand expected to grow by around 10 percent a year, experts say additional capacity is needed to prevent electricity shortages in the coming years and beyond.
The removal of state firm PT Perusahaan Listrik Negara's (PLN) monopoly would allow competition and could encourage some of Indonesia's more prosperous, resources-rich provinces to embark on new power projects for local use.
Indonesia's parliament had previously tried to end PLN's selling monopoly.
In 2002, it approved a new electricity law ending the selling monopoly of PLN, but two years later, the constitutional court struck down the law, saying that generation and distribution should be controlled by the government because of its importance.
Here are some key points in the draft electricity law, a copy of which was seen by Reuters:
* The central government and regional governments are in charge of providing electricity. * The central government is authorised to decide electricity policy, regulation, and electricity tariffs.
* The provincial governments are authorised to issue business permits for power in their respective regions.
* The local districts, or regencies, also have the authority to issue permits in their respective areas.
* Electricity generation and distribution for public consumption can be carried out by a state enterprise, a state regional company, private companies, and co-operatives.
* State enterprises will have first right to provide electricity for the public.
* The central government has the authority to decide electricity tariffs for consumers, to be approved by parliament.
* The provincial government has the authority to decide on electricity tariffs, based on agreement from members of the regional parliament.
* Electricity tariff for consumers can vary between regions.
(*)
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