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BATAM: PT Service National Electric Batam (PLNB) will re-propose the suspension of gas price increase of 11.78% to the Ministry of Energy to avoid the termination of gas supply by PGN and raising electricity tariffs.
Zaenuddin, President Director of PT PLNB, revealed his side would return filed deferral of gas price increases to the Ministry of Energy in the near future. "We will meet with the Director General together with Batam Muspida elements to re-ask for an increase does not apply to us," he said, today.

This effort to further ensure the development of ministry policy on suspension of the proposed submission of the gas price increases. Given the rise since the moratorium proposal was filed in early June 2010 there has not been any decision from the ministry until now.

PLNB filed two deferral option electricity price increase to the Ministry of Energy following the decision by PGN valorization of 11.78% against 28.3 BBTU PLNB supplied gas. Was affected by the increasing amount of gas because the machines are supplied to power plants owned by other private and rented PLNB temporary status.

The first option, PLNB asked the ministry to give special treatment to the electric operator in Batam was not affected by price increases for industrial gases. And the second option, if it can not be done ministry, then PLNB requested that the increase is not that big.

Gas price increase for that he believes will be unable to be borne by PLNB given the current operating expenses that must be spent each month for payment of fuel and gas supply has reached 60% of total expenditure. So that the suspension was proposed to avoid the possibility of raising electricity rates by PLNB.

Zaenuddin reasoned submission deferral increases as one attempts to avoid the stoppage of gas supply or the threat of liquefaction stand-by letters of credit (SBLC) by PT PGN. Recently, PLNB return received a letter from the contents of al PGN asking it to pay the gas price increase in August 2010 at the latest and if not already done so would dilute the SBLC's PGN PLNB.

In addition, PGN also, he said, would be to stop the supply to the entire PLTG used by PLNB. According to him, melting SBLC by PGN will have very bad effect on firm performance.

"If this is withdrawn, we will in-black list by the bank and we will not be able to apply for any credit, we will be destroyed credibility," he said. And if gas supply is stopped, then he was sure his company would not be able to supply electricity in the city because since 2009 they have been using 96% of gas plant. (HTR) By: Bisnis Indonesia

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