Legislator criticizes electricity hike plan<\/p>\n
Moch N. Kurniawan, The Jakarta Post, Jakarta<\/p>\n
The government's proposal for new power price rises next year
\ndrew strong criticism from a legislator Thursday, who said the
\nincrease in power charges for low-income customers contravened
\nthe agreement between the House of Representatives and the
\ngovernment.<\/p>\n
\"It can't be like that. We will ask them (the government) to
\nexplain it,\" Saul de Ornay of the Indonesian Democratic Party of
\nStruggle (PDI-P) said.<\/p>\n
According to Saul, the House and the government had agreed
\nlast month to increase power charges by an average of six percent
\nevery three months next year, with an exception being made for
\nlow-income customers living in houses with installed power
\ncapacity of 450 voltamperes (VA).<\/p>\n
The Ministry of Energy and Mineral Resources announced on
\nWednesday new power price proposals for next year, under which
\n450 VA customers will have to pay on average a 14.5 percent
\nincrease for every quarter of next year.<\/p>\n
Customers with installed capacity of 450 VA account for around
\n67 percent of PLN's 28.9 million customers.<\/p>\n
Director General of Electricity and Energy Utilization Luluk
\nSumiarso said that despite such hefty increases, the power prices
\npayable by low-income households would still be lower than the
\nproduction costs of state electricity company PT PLN.<\/p>\n
\"Although low-income customers will have to pay the largest
\nincrease, the prices will remain affordable in nominal terms,\" he
\nsaid.<\/p>\n
Middle-income households with installed power capacity of
\n2,200 VA will only have to pay on average an eight percent
\nincrease for every quarter of next year.<\/p>\n
The new pricing arrangements, if approved by President
\nMegawati Soekarnoputri, will come into force in January.<\/p>\n
Legislator Agusman Effendi of the Golkar faction, however,
\nsaid that the price increases were generally speaking fair.<\/p>\n
\"We have to realize that PLN must increase its charges if we
\nwant to reduce the government's subsidy,\" he said.<\/p>\n
The government has allocated Rp 4.1 trillion in subsidies to
\nPLN for next year, down from Rp 4.7 trillion this year.<\/p>",
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