Jakarta (ANTARA News) - The government is currently discussing its plan to raise the basic electricity rate by 10 - 20 percent in 2010, a minister said, adding the decision on percentage has been agreed by the House of Representative.
"The government is considering two things in raising the basic electricity tariffs, namely the rates should be able to provide profit for the survival of PLN but it should also be able to reflect the purchasing power of the people," Energy and Mineral Resources (ESDM) Minister Erwin Saleh said here on Friday.
He said that the range at between 10 and 20 percent had been decided by the government and the House of Representatives (DPR). It was contained in attachment of Law No. 47 on 2010 State Budget.
The minister said that the formulation of the basic electricity tariff was now under intensive discussions by, among others, expert staff of ESDM ministry, the electricity director general and first echelon officials of the finance ministry.
"We are now discussing its formulation, which includes how big its rates should be fixed and when it would be imposed," he said.
Darwin said that if the rates were fixed at a too low level PLN could not develop but if it was too low it would affect the lowest layers of the people.
"So, we will continue to protect financially weak consumers but would not either spoil those of big customers," the minister said.
The subsidy allocation at the state budget was set at Rp37.8 trillion.
In the meantime, the government is also selecting nominees for the PLN president director`s post.
The names of nominees are to be submitted to President Susilo Bambang Yudhoyono next week.
"We have conducted a fit-and-proper test this week at the Ministry of State Enterprises (BUMN) and we will hand over the results of the test to the selection team (TPA) next week," BUMN Minister Mustafa Abubakar said.
The president is the chairman of the TPA team with members consisting of the minister for energy and mineral resources (ESDM), the minister for financial affairs and the BUMN minister.(*)