'PLN should review rates hike plan'<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Legislators demanded on Monday that state electricity company
\nPT PLN review its plan for raising power rates in October this
\nyear, saying current rates were already too high.<\/p>\n
PLN has been allowed to raise power rates each quarter toward
\na level of 7 U.S. cents per kilowatt-hour (kWh).<\/p>\n
However, several legislators branded the targeted rate as
\n\"unrealistic,\" demanding the state firm cancel its plan to raise
\nits rates for the last quarter of the year.<\/p>\n
Tjetjep Rukmana, a legislator who spoke out against the rate
\nincrease plan, said the 7-cent rate was too high and burdensome
\non the public.<\/p>\n
\"Most importantly, the figure is not competitive compared with
\nthose imposed in other Asian countries, where the normal rate is
\n5 cents per kWh,\" he said during a hearing between PLN and House
\nCommission VIII on energy resources.<\/p>\n
During the hearing, PLN president Eddie Widiono strongly
\ndefended the 7-cent rate, saying it was an economic price for
\npower produced by PLN.<\/p>\n
\"Seven cents per kWh was the price enjoyed by PLN before the
\neconomic crisis,\" he said.<\/p>\n
He added that, thanks to past increases in power rates, PLN
\nwas able to accumulate funds for investment to avoid a power
\ncrisis in the future.<\/p>\n
He said power rates now stood at Rp 585.17, or 6.88 cents per
\nkWh, up from 549.6 (6.15 cents) per KwH the previous quarter.
\nShould PLN again raise its rates in October, they would reach Rp
\n610.62, or 7.18 cents per kWh.<\/p>\n
At the start of the hearing, Eddie insisted PLN would go ahead
\nwith raising its rates in October but it remained unclear if the
\nfirm would dare to do so, given the strong opposition from
\nlegislators.<\/p>\n
Under the existing law, PLN need only obey the government's
\ninstructions.<\/p>\n
During the hearing, Eddie also said that depending on the
\ngovernment's request, PLN might freeze its rates throughout next
\nyear to \"maintain security\" during the general election. Rises in
\npower rates have often sparked public protest in the past.<\/p>\n
Separately, PLN announced that it was offering incentives to
\nthose of its largest customers who were willing to reduce their
\npower usage or shift their activities from peak load hours in the
\ncoming months, when power supplies were predicted to drop due to
\nthe long drought.<\/p>\n
PLN commerce and customer service director Sunggu Anwar
\nAritonang said the incentives included a 25 percent rate
\ndiscount.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pln-should-review-rates-hike-plan-1447893297",
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