Govt may choose to impose electricity tariff below 10%

Rabu, 01 Februari 2012 | 09:28


Such gradual increase of electricity tariff will further ease the burden on the community rather than increase it directly by 10%. The efficiency of electricity subsidy will be used to develop infrastructure and raises public awareness to save electricity.


January 31, 2012 13:27

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JAKARTA: Ministry of Finance may choose to impose lower electricity tariff from the initial plan of 10% in April but refuses to implement the policy gradually as suggested by the Ministry of Energy and Mineral Resources.

Ministry of Finance Agus D.W. Martowardojo was unwilling to respond the suggestion from the Ministry of Energy and Mineral Resources. However, it’s still possible to set the tariff below 10%.

“It’s possible to set the tariff below 10% in April 1st but there is still no respond regarding the gradual increase of such tariff,” he said on the sideline of working meeting with Parliamentary Commission focus on defense and foreign affairs yesterday.

Director General of Electricity at the Ministry of Energy and Mineral Resources Jarman assessed that the electricity tariff will still increase by 10% in accordance to the 2012 State Budget as of April 1, 2012. “According to the financial notes in the 2012 State Budget, the electricity tariff will only rise 10%.”

Earlier, Deputy Minister of Energy and Mineral Resources Widjajono Partowidagdo suggesting a gradual increase of electricity tariff for 10 months. “In England, the electricity tariff increases 1% each month. Therefore, I recommend it gradually,” he said.

According to PT Perusahaan Listrik Negara (Persero) President Director Nur Pamudji, the company is poised to change the billing system if the government decided to raise the electricity tariff. “The rising of electricity tariff is the government authority,” he said.

The rising of tariff will not affect the company’s revenue. PLN revenue derives from electricity payment from subscriber and payment of public service obligation (PSO) known as electricity subsidy.

The government previously plans to provide electricity subsidy around IDR45 trillion in 2012, assuming the average increase is 10% as of April 1, 2012.

“The increase of electricity tariff only affects subsidy post rather than the company’s revenue post,” he said.

Ministry of Energy and Mineral Resources prepares scenario for the rising of electricity tariff. First, the subscriber of 450 VA will not subject to such increase. Meanwhile, the second scenario is that the subscriber of 450 VA and 900 VA will subject to such increase after using 60 kWh per month. (14) (t06/msw)

By Firman Hidranto, Agust Supriadi
Source http://en.bisnis.com