JAKARTA - Director of the Center of Economic and Law Studies (Celios) Bhima Yudhistira assesses that there are three ways the government can overcome oversupply or excess electricity supply of PLN. One of them is to evaluate the PLN electricity buying and selling agreement with a take or pay scheme.

For your information, the take or pay scheme that applies to private electricity producers or Independent Power Producers (IPP), PLN must pay for an oversupply of electricity even though it is not absorbed by the community and business actors.

As the name implies, the take or pay scheme means 'take or pay a fine'. This means that PLN must absorb electricity produced by IPP in accordance with the contract for the sale and purchase of electricity agreement. If not, then PLN must pay a penalty or a fine.

According to Bhima, the take or pay scheme burdens the finances of the country's stun company. Therefore, it must be evaluated. Bhima also said that PLN must have the bargaining power in the electricity sale and purchase agreement.

"The electricity sale and purchase agreement that burdens PLN's finances with a take or pay scheme. This must be re-evaluated so that PLN has the bargaining power to refuse electricity if the supply is excessive," he told VOI, in Jakarta, Wednesday, September 28.

Not only that, said Bhima, the government must also evaluate the 35,000 MW project mega. Because, at the time of the feasibility test, many assumptions were forced.

"Third, accelerating the early retirement program for coal power plants through Presidential Regulation 112 of 2022 so that excess supply upstream can be suppressed," he said.


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