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Monopolistic Practices on Electricity Business in Java. Monopolistic Practices
on Electricity Business in Java Introduction It is ...
... that KKN is one of the practices that cause ... Monopolistic competition, in which there
are many sellers ... 49% of the population has electricity ? Internet usage ...
... 1993) Innovation and Entrepreneurship – Practices and Principles ... from the state like
monopolistic routes and ... like telecommunications and electricity, in order ...
Submitted by hnoviar on July 21, 2008
Category: Miscellaneous
Words: 1448 | Pages: 6
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Monopolistic Practices on Electricity Business in Java
Introduction
It is very recently the state-own company PLN (Perusahaan Listrik Negara) announces that the monopoly holder of electric business in the country planned to put at least 10 of the bigger power generators of the Java systems out during the Idul Fitri holiday season. The temporary blackout for the selected generators is to compensate drastic low demand during the national holiday. PLN usually needs to manage the stability of supply and demand rates balance by means of maintaining the amount of power electric inflow into and outflow from the regional grids to avoid wasting capacity. And in case that the supplies are shortages, alternating partial blackout often becomes the only solution.
To solve the problem, PLN have a planning to build 10.000 MW power plants, which use coal as a fuel to replace power plant which use oil fuel. By this project, PLN can supply electricity to the consumer with good performance. PLN always have a reason that they deficit power to supply electricity when the consumer complaint about service which is delivered by this state own electricity company. Beside this, the project is expected to push PLN become a profit company; consider with the new power plant, PLN can reduce fuel cost. As we know in the PLN’s cost structure, oil fuel cost takes a big portion so that with the reducing fuel consumption can reduce cost significantly.
The next question when the new power plant have built, is it really PLN able to provide good services for consumer? For the consumer, they don’t want to know about a PLN’s problem. The consumer’s desire is how the service which is delivered by PLN is fit with standard, uninterrupted, and low tariff.
Nowadays PLN is indeed the sole player in the electric business in the country upstream to downstream from the power generation to the distribution. Is it monopolistic? It is obviously so. The...
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