- The ongoing discussions of the draft version of the New and Renewable Energy Bill (Rancangan Undang-Undang Energi Baru dan Energi Terbarukan – "RUU EBET") have brought the Power Wheeling (PW) scheme into focus, sparking significant debate among stakeholders. Marwan Batubara, Executive Director of Indonesian Resources Study, has voiced strong objections to the scheme, arguing that it effectively transforms electricity into a market commodity, potentially undermining state protections for the economically vulnerable.
- The PW scheme, as proposed, would permit private power producers to transmit electricity through PT PLN Persero ("PLN") transmission and distribution networks to their own customers. Critics of the scheme argue that this could substantially reduce PLN’s revenue, leading to an increased financial burden on the state budget due to higher energy subsidies. This, in turn, could translate into elevated electricity tariffs for consumers, exacerbating the economic challenges that are currently being faced by many.
- Batubara also contends that the PW scheme is not only economically detrimental but also at odds with the moral principles that Pancasila embodies. In this regard, Batubara warns that the implementation of the PW scheme could lead to higher electricity costs and an increased reliance on state subsidies, which would in turn disproportionately affect the public and place an increased strain on national resources.
- Affirming these concerns, Riki Ibrahim, former President Director of PT Geo Dipa Energi (Persero), has emphasized the need for the RUU EBET to focus on expanding fiscal incentives in order to accelerate the growth of renewable energy, rather than facilitating the PW scheme. Ibrahim cautions that while current Regulations, such as Ministry of Energy and Mineral Resources Regulation No. 01/2015, allow for the shared use of transmission networks, this should not be interpreted as support for PW within the RUU EBET. Ibrahim has also highlighted the potential price disparities that could emerge and that could negatively impact state revenue, further complicating the economic landscape.
- The debate over the PW scheme raises critical questions about its potential impact on Indonesia’s energy sector, the risk of increased costs to consumers and the broader implications for public welfare and the country’s energy sovereignty. (ANT)
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