The power sector remains an industry that is recovering at the latest due to the pandemic. Until the first half of 2020, domestic electricity sales have not yet recovered, which is burdening electric companies entering survival mode. Continued support from the government is being observed through electricity bill relief that is extended to the end of this year as well as recovery plans to enforce the continuity of the country’s energy master plan towards energy transition and security.
Knowing the pandemic has yet to end, most of the AMS agreed to extend power bills discount until the end of 2020. In the first half, it observed that domestic electricity demand remains dropped, causing financial issues in big power companies, both producers and distributors. In the power distributor, the problem is more obvious due to electricity sales declined. However, in power producers, the issues may be varied, including the side effect from losses or profit fell seen in the power distributor. Therefore, the stimulus recovery plan from the government should address hardships faced by power companies as well as build a more strategic pathway towards energy transition and resilience.
In our Q2 energy insight, we observed the struggle faced by power companies due to the halted projects, the soaring electricity demand, and a proper recovery incentives plan prepared by the government. However, since the pandemic still surrounding us, the issues in the electricity sector seemingly similar in this Q3.