Tuesday, 7 July 2009

Government, House agree on region-based power rate

The government and lawmakers have agreed to adopt a region-based electricity rate system, said J. Purwono, Director General for Electricity and Energy Utilization at the Energy and Mineral Resources Ministry, The Jakarta Post reported.
The new electricity rate system would be incorporated in new regulations on electricity which are currently being deliberated by the government and House of Representatives, said Purwono, adding that about 90% of the bill has been agreed on.
"We expect the House to pass the bill by the end of the lawmakers' current term on July 3. The new system is expected to be implemented by the end of 2010 or by the beginning of 2011," Purwono said.
"For regions covering more than one province, the rates will be determined by the central government. For regions within one province, rates will be determined by the provincial government," Purwono said.
With the new system, regions with better electricity services such as Java and Bali are likely to pay higher rates than other regions, Purnomo said.
"The subsidy will still be provided, but will mainly go to regions outside Java and Bali where the power network is not as extensive," Purwono said.
The government has agreed to sanction PLN`s business margin of 2% or about Rp3 trillion to calculate electricity subsidies for 2010, Purwono said on Tuesday. Earlier, PLN proposed a 3% business margin to calculate electricity subsidy for 2010, Antara reported.
Source: ww.ekon.go.id

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