Govt to raise power rates an average of 8.19%
\nOR
\nPower rates to increase an average 8.19 percent<\/p>\n
JAKARTA (JP): The government said on Tuesday it would raise
\nelectricity rates by an average of 8.19 percent starting next
\nmonth to mark the second and last stage of last July's 17.47
\npercent increase.<\/p>\n
State electricity company PLN will gain a revenue boost of Rp
\n1.4 trillion (about US$147.36 million) from the increase, said
\nMinister of Energy and Mineral Resources Purnomo Yusgiantoro in a
\nhearing with House of Representatives Commission VIII.<\/p>\n
Last July, the government and legislators agreed to raise
\npower rates by an average 17.47 percent to help the financially
\nailing PLN.<\/p>\n
Last year, the company's net loss surged to Rp 26.61 trillion,
\nmore than double the net loss recorded the previous year.<\/p>\n
PLN largely blames its losses on the strong dollar, which made
\npower purchases from independent power producers here expensive.<\/p>\n
Combined with last July's power rate increase, PLN will enjoy
\na revenue boost of about Rp 2.3 trillion this year.<\/p>\n
Purnomo, however, added that the increase was not enough to
\nprevent PLN from remaining in the red this year.<\/p>\n
PLN president Eddie Widiono has predicted the company will
\nstill suffer losses of around Rp 4.5 trillion this year.<\/p>\n
October's power hike will be part of a two-stage power rate
\nincrease that began last July.<\/p>\n
Depending on the installed power capacity and consumption
\nrate, household customers were subject to an increase of between
\n22.3 percent to 62.9 percent in July.<\/p>\n
The rates will increase another 9.7 percent to 20.6 percent in
\nOctober.<\/p>\n
Industrial customers faced an increase of between 13.8 percent
\nand 14.6 percent in July, with another 3.6 percent and 4.2
\npercent next month.<\/p>\n
Exempt from power hikes are poor households with an installed
\npower capacity of only 450 volt-ampere.<\/p>\n
These, however, account for around 67 percent of PLN's total
\n28.9 million customers, Eddie said.<\/p>\n
PLN data shows that industrial customers account for about 42
\npercent of PLN's revenue, household about 40 percent, businesses
\nabout 13 percent.<\/p>\n
The rest is divided among public facilities with 3 percent,
\nand social institutions with only 2 percent.<\/p>\n
The government hikes power rates to cut subsidy spending on
\nelectricity, and thus ease pressure on the state budget.<\/p>\n
Although an unpopular move, reducing subsidy spending,
\nincluding that for fuel, is part of the government's economic
\nreform.(bkm)<\/p>",
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