JAKARTA (TheInsiderStories) - The Energy and Mineral Resources Ministry has issued a new Ministerial Decree No. 19, 2017 on the Utilization of Coal for Power Plant and Purchase of Excess Electricity.
The new ruling regulates the maximum tariff for mine mouth, which is expected to help ensure the basic procurement cost (BPP) of local power plants to be more effective and efficient.
Based on the ruling, if the local BPP of the power plant is lower than the BPP National, then, the highest tariff will be set at 75% of local BPP level.
If the BPP of the power plant is higher than BPP national power plant, then, the highest tariff will be set at 75% of national BPP level. The purchase of electricity assumes the power plant capacity is at 80%.
In addition, the regulation also regulates the highest price reference (HPT) for excess power from the mine mouth power plant. The excess power can be used to strengthen the local national power supply. (*)