Power Wheeling Scheme Assessed In The State Budget

Energy Economy Observer at Gadjah Mada University Fahmy Badhi. (Photo: Doc. ANTARA)

JAKARTA - Energy Economy Observer at Gadjah Mada University, Fahmy Badhi, assessed that the power wheeling scheme in the New Energy and Renewable Energy Bill (EBET) can erode the state budget.

Currently, the discussion of the EBET Bill which was delayed has been discussed again at Commission VII DPR RI.

One of the reasons for the postponement of the discussion of the EBET Bill is the difference of opinion between parties regarding the article power steering.

"In fact, the article was dropped in early 2023, but it was raised again in the next 3 months, which is currently in the formulation and synchronization stage," said Fahmy, Saturday, September 7.

Fahmy explained, power steering is a mechanism that allows private parties or Independent Power Producers (IPP) to build EBET power plants as well as sell directly to consumers using PLN's transmission and distribution networks.

The rental price for the use of transmission and distribution networks is determined by the government.

Fahmy said, allowing IPP to sell electricity directly to consumers is actually a form of electrical liberalization that is contrary to the constitution. Violations of the constitution include: Law No. 30/2009 on electricity, Constitutional Court Decree Number 111/PUU-XIII/2015 and Article 33 paragraph 2 of the 1945 Constitution said: Production branches that are important for the state and those that control the lives of many people are controlled by the state'.

"Opening access to power steering to Wulus, both Wulus-PLN and industrial non-PLN, will actually erode PLN's revenue because 90 percent of PLN's revenue comes from industrial customers," he said.

In addition to eroded PLN's revenue, Fahmy also said that the power steering scheme would increase PLN's operational costs to finance reserve plants, which needed to support Solar Power Plants (PLTS) and Bayu Power Plants (PLTB) in the form of intermittents influenced by the sun and wind.

Later, the increase in operational costs will increase the cost of electricity supply (HPP).

If the electricity tariff is set below the HPP, the state will have to spend the state budget to pay compensation to PLN.

"The swelling of APBN expenditure for PLN compensation will certainly erode the APBN which has the potential to reduce the APBN budget to finance President-elect Prabowo Subiyanto's strategic program, including a free nutritious eating program. Since power steering violates the constitution, reduces PLN's revenue, and erodes the APBN, the power steering article must be dropped from the EBET Bill before being ratified," concluded Fahmy.