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PLN to raise electricity rate in June

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Editor

31 May 2016 16:16 WIB

Officers inspect PLN's transmission installation in Bengkayang, West Kalimantan, on May 10, 2016.

TEMPO.CO, Jakarta - State-owned electricity company PLN has planned to increase the electricity price in June 2016 for consumers whose rate had been adjusted, due to the depreciation of rupiah against the US dollar.

PLN president director Sofyan Basir confirmed that the weakening of rupiah has increased the fuel cost component for power plants.

“The cost has slightly increased, because we buy electricity from Independent Power Producers (IPP) using US dollar,” Sofyan explained.

Factors affecting electricity prices include exchange rate, inflation, and oil price.  Although oil price had slumped, Sofyan said it did not have much impact on the electricity price.

“The reason is that our power plants that use fuel oil is not many,” Sofyan said.

However, Sofyan could not yet reveal the exact amount of the electricity price hike for the 12 categories of customers. The electricity price hike, Sofyan said, would apply to households, businesses and industries.

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