Govt delays power tariff increases for households<\/p>\n
JAKARTA (JP): Minister of Mines and Energy Kuntoro
\nMangkusubroto has ordered state electricity company PLN to delay
\nincreasing power prices for households following mounting public
\nprotests.<\/p>\n
Kuntoro said yesterday that the delay in the tariff increase
\nwas essential to protect low-income people.<\/p>\n
PLN president Djiteng Marsudi said last night he would comply
\nwith the instruction.<\/p>\n
\"We will comply with the order. As a matter of fact, the order
\nwas made based on input from PLN,\" he told reporters at his
\noffice.<\/p>\n
Djiteng said PLN proposed to delay increasing power prices for
\nhouseholds following public protests over the extreme increase in
\npower prices.<\/p>\n
\"We are concerned about the safety of our employees who have
\nbeen threatened by the public because of the power price
\nincrease. Some of our branches in Central and East Java have been
\ndamaged or received threats of damage,\" Djiteng said.<\/p>\n
Djiteng said the government had not decided for how long the
\nincrease would be postponed.<\/p>\n
The government has increased power prices by an average of 20
\npercent for June to August bills and will further increase prices
\nby an average of 18 percent for September to November bills and
\nby another 20 percent for December bills.<\/p>\n
Tariffs for households using between 450 volt-amperes (VA) and
\n2,200 VA were raised by 37.7 percent to an average of Rp 206.22
\nper kilowatt hour (kwh) from Rp 148.61 per kwh.<\/p>\n
However, many PLN customers claim their power bills have been
\nhiked 200 percent.<\/p>\n
Households make up 72 percent or 18 million out of PLN's 25
\nmillion customers, but they contribute only about 30 percent of
\nthe company's revenues which stood at Rp 11 trillion last year.<\/p>\n
Kuntoro blamed the extreme increases in power prices on PLN's
\npoor billing system.<\/p>\n
According to the minister, PLN hired contractors, mostly small
\ncooperatives, to record and calculate power usage from clients'
\nelectricity meters at a commission of Rp 85 (0.5 US cents) per
\nclient.<\/p>\n
He said the small commission might have made the contractors
\nreluctant to send personnel to each meter to record the actual
\npower usage. Instead, the contractors usually estimated the power
\nusage based on as many clients as possible to obtain a huge
\ncommission.<\/p>\n
Kuntoro also called on the public to save power by using
\nenergy-efficient equipment and not using electric appliances,
\nincluding televisions, freezers and air conditioners, at the same
\ntime.<\/p>\n
Djiteng admitted PLN hired cooperatives to record clients'
\npower usage, adding their commission was Rp 100 per client, not
\nRp 85 as mentioned by Kuntoro.<\/p>\n
\"Maybe, some contractors have not yet fulfilled their jobs
\nwell. We have yet to evaluate what really happens,\" Djiteng said,
\nadding that PLN would annul contracts with poorly-performing
\ncontractors.<\/p>\n
He promised to immediately improve PLN's billing system.<\/p>\n
\"We can improve it in two or three days. But it depends on the
\ngovernment when the new prices will be reapplied,\" Djiteng said.<\/p>\n
He said clients who had paid bills with increased prices this
\nmonth would get their money back when they went to pay their
\nbills next month.<\/p>\n
PLN has been severely battered by the monetary crisis which
\nhas been gripping the country since the middle of last year.<\/p>\n
The rupiah's sharp depreciation against the U.S. dollar left
\nthe company nursing a loss of Rp 500 billion last year.<\/p>\n
The triple increases in power prices were expected to reduce
\nthe company's losses from an estimated Rp 11 trillion to Rp 2.3
\ntrillion this year. (jsk)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-delays-power-tariff-increases-for-households-1447893297",
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