Sale-Price Policy and Leasing Line-net of Electricity Power

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1.3.5 Sale-Price Policy and Leasing Line-net of Electricity Power

The sale-price policy and have leasing line-net of electricity is an instrument to rule of keeping fairness to those parties in transaction. The government has authority to give agreement upon the sale-price of electricity and leasing of line-nets from bearer of permits in business of supply electricity power as decided by Government. The agreement on the sale-price can be a standard price. In order to encourage investor be more attractive and also to keep business climate well run in principally the sale-price of electricity and leasing line-net of electricity is decided bases to a healthy business principle. In order to encourage uses of newly energy and renewable in an electricity generating, the government should make efforts completing the rule of sale-price and the generating plant using a newly energy and renewable such as geo-thermal, Micro hydro, PLT Rubbish – power plant, Wind and other EBT through a mechanism of Feed in Tariff price with more attractive and under standard price. In addition, Government also make rules with mechanism of sale-price in quite large generating plant by issuing a Ministry Decree ruling the standard price of buying electrical power by appointing directly. A policy to define price in leasing is need to rule on a natural monopoly. Refers to Government Regulation No. 14 of 2012 regarding Business operation in supply Electrical as it has been amended with a Government Regulation no. 23 of 2014 that a transmission business on electricity is subject to open opportunity using jointly the transmission nets for public interest. On business work distribution of electricity may open opportunity the uses jointly a distribution net. The jointly uses transmission and distribution net is done under a net-leasing inter bearer of permits in business to supply the electricity that having a transmission business and or distribution with the party is going to use the transmission nets and or distribution business having already agreed on cost of leasing by the Ministry or Governor refers to the authority. For the jointly uses transmission nets andor distribution must consider capability on capacity of transmission nets andor its distribution. As a guidance, the 14 Government has issued already a Decree of Ministry in Energy and Natural Resources No. 1 of 2015 regarding a Cooperation of Supply Electricity and Jointly uses of Electricity Nets.

1.3.6. Tariff Policy