ADJUSMENT OF BASIC ELECTRICITY TARIFF IS MEANT FOR SHARING BURDEN

The Government’s plan to make adjustment of Basic Electricity Tariff in the near future was an effort to distribute load whereby the national Electric Company (PLN) could build network in the regions not having current supply. This was an explanation by the Ministry of Energy and Mineral Resources, Darwin Zahedy Saleh in regard to the plan to increase electricity tariff, in a press conference at the Ministry’s office, Monday (14/6).

In a press conference preceeding Government’s consultation with Commission VII scheduled for Tuesday (15/6) the Minister of Energy and Mineral Resources explained that the Government proposed to increase of Basic Electricity Tariff (TDK) by Rp 2,000 to Rp 3,000 for 450 VA categories and Rp 5,000 to Rp 6,000 for 900 VA category.

The Government called out the public to share cost burden with other customers including the 450 VA category through tariff adjustment whereby PLN would be enabled to build power distribution network in remote areas, the Minister disclosed. Furthermore the Minister added that the authority of electricity price increase was in the Government’s domain.

The lesser income group who are not having access to electricity constitutes around 35%. Assuming that the number of families was 53 million people by census, there are 18.9 homes who are not having electricity. It would be impossible for PLN to build new networks to serve these groups unless fund is available.

“We are accustomed to think that the lowest group are the 450 Va category, but in fact there is still below that the zero VA category who are not having electricity at all. We are not supposed to forget our fellow countrymen who are in that group, the Ministry underscored.”

Today the biggest consumer group who are enjoying subsidy is the 450 VA category, followed by medium sized consumers and 900 VA consumers.