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Thursday, 02 January 20
DMO 2020 PRICE SET FOR ELECTRICITY SECTOR - IAN WOLLFF
 On the 26th December 2019, the Minister of Energy and Mineral Resources (ESDM) issued the decree No. 261.K/30.MEM/2019 about the States needs for coal in 2020 [Domestic Market Obligation = DMO] that is effective from the 1st January 2020. It is good that the decree was issued prior to its application, and the socialization of the decree is much anticipated.
The first three stipulations simply set the DMO for coal producers at a minimum of 25% of their sales. If this commitment is not met, then the producers are “obliged to pay compensation” for the shortfall amount of DMO sales. Note that the nature of such compensation is not mentioned in this decree.
The remainder of the decree specifically addresses coal sold “for the supply of electricity for public use..” The DMO sales for the cement and other industries are not mentioned, and presumably this decrees price setting formula for the electricity industry may not apply to other DMO coal uses.
The decree sets the coal selling price to the domestic electricity market, based upon a reference coal quality, and at the Free On Board (FOB) sales point. It would appear the business entity providing electricity is now mandatory to buy coal FOB and be responsible for coal transport, and to prioritize long term contracts. Coal producers that do not meet their DMO commitments related to the domestic electric market will be subject to sanctions in the form of reducing quota for the following years approved production. There seems to be no mention on the differentiation of 25% overall DMO and the proportion to be committed to the electric industry.
The Decree’s attachment sets out the determination of the selling price for the supply of electricity for public interest. There is separate formula for when the coal reference price is equal or more than USD 70/ton FOB, and for when the coal reference price is less than USD 70/ton FOB. The formula considers variations in coal quality and provides a table of 77 Indonesian coal quality / brands. There is a third consideration in the calculation of coal sales price to the electricity supply for public interest related to Spot Sales. It would seem the formulae do not consider coking properties.
Ian Wollff
Principal Geologist. Independent Consultant
Originally Published on Linkedin on 1 January 2020
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Monday, 02 December 19
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Monday, 02 December 19
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Sunday, 01 December 19
6TH CENTRAL & EASTERN EUROPE NUCLEAR INDUSTRY CONGRESS 2020
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Saturday, 30 November 19
IMO2020 GLOBAL SULPHUR CUT: GERMAN SHIPPING TO USE NEW TYPE OF FUEL VDR SURVEY
IMO2020 Global sulphur cut: German shipping to use new type of fuel VDR survey: Technical issues and costs are the biggest challenges - VDR
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- Gujarat Electricity Regulatory Commission - India
- Price Waterhouse Coopers - Russia
- Tata Chemicals Ltd - India
- Sojitz Corporation - Japan
- Medco Energi Mining Internasional
- Jindal Steel & Power Ltd - India
- Meralco Power Generation, Philippines
- Kumho Petrochemical, South Korea
- Siam City Cement PLC, Thailand
- Economic Council, Georgia
- Kideco Jaya Agung - Indonesia
- IHS Mccloskey Coal Group - USA
- Madhucon Powers Ltd - India
- Grasim Industreis Ltd - India
- Trasteel International SA, Italy
- Attock Cement Pakistan Limited
- Thiess Contractors Indonesia
- Therma Luzon, Inc, Philippines
- Parry Sugars Refinery, India
- Pendopo Energi Batubara - Indonesia
- Orica Australia Pty. Ltd.
- Straits Asia Resources Limited - Singapore
- GMR Energy Limited - India
- Timah Investasi Mineral - Indoneisa
- Holcim Trading Pte Ltd - Singapore
- SMG Consultants - Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bahari Cakrawala Sebuku - Indonesia
- Ambuja Cements Ltd - India
- White Energy Company Limited
- Dalmia Cement Bharat India
- Iligan Light & Power Inc, Philippines
- Essar Steel Hazira Ltd - India
- ASAPP Information Group - India
- Deloitte Consulting - India
- Kartika Selabumi Mining - Indonesia
- Savvy Resources Ltd - HongKong
- Australian Coal Association
- Indika Energy - Indonesia
- Krishnapatnam Port Company Ltd. - India
- Vizag Seaport Private Limited - India
- Xindia Steels Limited - India
- Central Electricity Authority - India
- Maharashtra Electricity Regulatory Commission - India
- Bhatia International Limited - India
- Agrawal Coal Company - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Bangladesh Power Developement Board
- Jorong Barutama Greston.PT - Indonesia
- Star Paper Mills Limited - India
- Gujarat Sidhee Cement - India
- Simpson Spence & Young - Indonesia
- Vedanta Resources Plc - India
- Ministry of Mines - Canada
- Kaltim Prima Coal - Indonesia
- MS Steel International - UAE
- Coastal Gujarat Power Limited - India
- Kalimantan Lumbung Energi - Indonesia
- Gujarat Mineral Development Corp Ltd - India
- San Jose City I Power Corp, Philippines
- Binh Thuan Hamico - Vietnam
- Edison Trading Spa - Italy
- Makarim & Taira - Indonesia
- Central Java Power - Indonesia
- South Luzon Thermal Energy Corporation
- Lanco Infratech Ltd - India
- Malabar Cements Ltd - India
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- GN Power Mariveles Coal Plant, Philippines
- VISA Power Limited - India
- TNB Fuel Sdn Bhd - Malaysia
- Goldman Sachs - Singapore
- Indonesian Coal Mining Association
- CNBM International Corporation - China
- Kohat Cement Company Ltd. - Pakistan
- Petron Corporation, Philippines
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Karbindo Abesyapradhi - Indoneisa
- Meenaskhi Energy Private Limited - India
- Bukit Asam (Persero) Tbk - Indonesia
- Anglo American - United Kingdom
- Samtan Co., Ltd - South Korea
- TeaM Sual Corporation - Philippines
- Formosa Plastics Group - Taiwan
- European Bulk Services B.V. - Netherlands
- Bulk Trading Sa - Switzerland
- Coal and Oil Company - UAE
- Bukit Makmur.PT - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Renaissance Capital - South Africa
- Salva Resources Pvt Ltd - India
- Baramulti Group, Indonesia
- Georgia Ports Authority, United States
- The State Trading Corporation of India Ltd
- Kapuas Tunggal Persada - Indonesia
- Wood Mackenzie - Singapore
- Uttam Galva Steels Limited - India
- LBH Netherlands Bv - Netherlands
- Electricity Generating Authority of Thailand
- Cigading International Bulk Terminal - Indonesia
- Orica Mining Services - Indonesia
- Larsen & Toubro Limited - India
- Jaiprakash Power Ventures ltd
- Heidelberg Cement - Germany
- Chettinad Cement Corporation Ltd - India
- Bukit Baiduri Energy - Indonesia
- Global Coal Blending Company Limited - Australia
- Sree Jayajothi Cements Limited - India
- The University of Queensland
- Cement Manufacturers Association - India
- Carbofer General Trading SA - India
- International Coal Ventures Pvt Ltd - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Romanian Commodities Exchange
- Singapore Mercantile Exchange
- SN Aboitiz Power Inc, Philippines
- Indogreen Group - Indonesia
- Ceylon Electricity Board - Sri Lanka
- Karaikal Port Pvt Ltd - India
- Semirara Mining and Power Corporation, Philippines
- Eastern Energy - Thailand
- Manunggal Multi Energi - Indonesia
- Planning Commission, India
- GVK Power & Infra Limited - India
- Electricity Authority, New Zealand
- Independent Power Producers Association of India
- Ministry of Transport, Egypt
- AsiaOL BioFuels Corp., Philippines
- Sarangani Energy Corporation, Philippines
- Metalloyd Limited - United Kingdom
- Antam Resourcindo - Indonesia
- PNOC Exploration Corporation - Philippines
- SMC Global Power, Philippines
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Riau Bara Harum - Indonesia
- Minerals Council of Australia
- Mercuria Energy - Indonesia
- New Zealand Coal & Carbon
- Thai Mozambique Logistica
- Standard Chartered Bank - UAE
- Offshore Bulk Terminal Pte Ltd, Singapore
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- OPG Power Generation Pvt Ltd - India
- Banpu Public Company Limited - Thailand
- Australian Commodity Traders Exchange
- Semirara Mining Corp, Philippines
- Neyveli Lignite Corporation Ltd, - India
- Globalindo Alam Lestari - Indonesia
- Parliament of New Zealand
- Sindya Power Generating Company Private Ltd
- PowerSource Philippines DevCo
- Bharathi Cement Corporation - India
- PTC India Limited - India
- Bayan Resources Tbk. - Indonesia
- Power Finance Corporation Ltd., India
- Maheswari Brothers Coal Limited - India
- Mercator Lines Limited - India
- Marubeni Corporation - India
- Indo Tambangraya Megah - Indonesia
- Oldendorff Carriers - Singapore
- Borneo Indobara - Indonesia
- Intertek Mineral Services - Indonesia
- Commonwealth Bank - Australia
- Sinarmas Energy and Mining - Indonesia
- Bhushan Steel Limited - India
- Billiton Holdings Pty Ltd - Australia
- Kobexindo Tractors - Indoneisa
- Port Waratah Coal Services - Australia
- ICICI Bank Limited - India
- Videocon Industries ltd - India
- Rashtriya Ispat Nigam Limited - India
- Eastern Coal Council - USA
- Toyota Tsusho Corporation, Japan
- CIMB Investment Bank - Malaysia
- Rio Tinto Coal - Australia
- IEA Clean Coal Centre - UK
- McConnell Dowell - Australia
- India Bulls Power Limited - India
- Aditya Birla Group - India
- Leighton Contractors Pty Ltd - Australia
- Mjunction Services Limited - India
- Bhoruka Overseas - Indonesia
- The Treasury - Australian Government
- Energy Link Ltd, New Zealand
- Miang Besar Coal Terminal - Indonesia
- PetroVietnam Power Coal Import and Supply Company
- Coalindo Energy - Indonesia
- Posco Energy - South Korea
- Aboitiz Power Corporation - Philippines
- Siam City Cement - Thailand
- Asmin Koalindo Tuhup - Indonesia
- Directorate Of Revenue Intelligence - India
- Tamil Nadu electricity Board
- Wilmar Investment Holdings
- Global Business Power Corporation, Philippines
- Altura Mining Limited, Indonesia
- London Commodity Brokers - England
- Alfred C Toepfer International GmbH - Germany
- GAC Shipping (India) Pvt Ltd
- Barasentosa Lestari - Indonesia
- Merrill Lynch Commodities Europe
- Africa Commodities Group - South Africa
- Kepco SPC Power Corporation, Philippines
- Petrochimia International Co. Ltd.- Taiwan
- Energy Development Corp, Philippines
- Interocean Group of Companies - India
- Chamber of Mines of South Africa
- Global Green Power PLC Corporation, Philippines
- Vijayanagar Sugar Pvt Ltd - India
- Sical Logistics Limited - India
- Indian Energy Exchange, India
- Mintek Dendrill Indonesia
- Ministry of Finance - Indonesia
- Latin American Coal - Colombia
- Indian Oil Corporation Limited
- Sakthi Sugars Limited - India
- Ind-Barath Power Infra Limited - India
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