New Electricity Tariffs to be Applied Gradually
Monday, 03 March, 2008 | 17:28 WIB

TEMPO Interactive, Jakarta: The electricity incentive and disincentive policy will be applied gradually.

Purnomo Yusgiantoro, the Energy and Mineral Resources Minister, said the government and PT PLN the (State Electricity Company) will socialize the new policy first.

“After being socialized, it will then be applied gradually,” he said in Jakarta, last Friday (29/2).

Under the new policy, electricity consumers who use above 80 percent of the standard amount—set by the government—will be charged a more expensive tariff, 1.6 times the normal tariff.

On the other hand however, customers will enjoy 20 percent discount of electricity bill if their use is less than 80 percent of the standard.

The policy, which resulted from a cabinet session, said Purnomo, was aimed at directing the subsidy to reach the right target.

In the mean time, world oil price increases up to US$100 per barrel have caused the subsidy burden to increase to Rp65 trillion.

This is despite the State Budget having only allocated Rp55 trillion.

The government decided that in order to cover the lack of budget, there will be 20 percent saving by applying incentive and disincentive tariffs.

It is planned that the policy will be effective as from March and be included in bills the following month.

Fabby Tumiwa, an electricity observer, said the national standard for incentive and disincentive tariffs, using the ceiling, would benefit consumers.

This is because the national average electricity use, 75 kWh, which was planned to be the standard, did not represent regional use.

“This limit doesn’t reflect consumption specifically,” he said.

Wahyudin Munawir, a member of the House of Representatives (DPR) Energy Commission, told Tempo that if the government and PLN insist on applying the new electricity tariffs policy, “We’ll ask the policy be included in a presidential decision.”

ANNE L HANDAYANI | Nieke Indrietta