Electricity Tariffs to Increase on June
21 April 2014 16:34 WIB
TEMPO.CO, Jakarta - On April 1, 2014, Minister of Energy and Natural Resources Jero Wacik signed a Minister Regulation No. 9/2014 on Electricity Tariffs for the State-Electricity Company (PLN). One of the main point stipulated in the regulation is the implementation of electricity tariff adjustment for four groups of PLN customers.
The four groups are large household with electric power above 6,600 watts, middle class businesses (6,600 watts to 200 kilowatts), large businesses (above 200 kilowatts) and government offices (6.600 to 200 kilowatts). With a floating tariff mechanism, every month PLN will calculate new eletricity tariff according to changes in Rupiah exchange rate, ICP and inflation.
"This tariff adjustment Policy will be applied in June 2014 [for July billing statement]," said Director General of Electric Power of the Ministry of Energy Jarman to Tempo yesterday. According to Jarman, the policy is applied so that non-subsidy PLN customers will no longer receives subsidy.
Referring to PLN's note, the four groups no longer receives subsidy since October 1, 2013. However, due to the weakening Rupiah and increasing oil prices in 2014, these groups started to receive Rp 728 billion subsidy from the total electricity subsidy of Rp 71.4 trillion.
Jarman said that every month, new electricity tariff will be announced on PLN's website and electric payment counters. With this mechanism, it is possible that the electricity being paid will be less if the exchange rate of Rupiah strengthen or oil prices experience a decrease. Concerning the implementation of floating tariff for other customers, he said that it is being discussed. "The result will be reported to the House Of Representatives (DPR) for approval," he stated.
BERNADETTE CHRISTINA MUNTHE | TRI ARTINING PUTRI