Power rates up, oil stable next month<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
State-owned electricity firm PT PLN said power prices will
\nincrease on April 1 by 6 percent in line with the presidential
\ndecree allowing it to increase charges every quarter throughout
\nthe year.<\/p>\n
\"As long as there is no new government policy reviewing the
\npresidential decree, power rates will automatically increase
\nevery quarter of the year.<\/p>\n
\"So, there is going to be an average 6 percent hike in
\nelectricity rates next month,\" Muljo Adji, the company's
\nspokesman, told The Jakarta Post on Thursday.<\/p>\n
PLN has been permitted by the government to raise its charges
\nin each quarter starting 2001 with the aim of improving the
\nfirm's financial condition. PLN suffered losses of around Rp 4.47
\ntrillion (US$502 million) last year.<\/p>\n
The government said the increase would bring the rate to a
\ncommercial level of 7 U.S. cents per kilowatt hour (kWh) in 2005.<\/p>\n
The current price of Rp 488 per kWh was equal to around 5.42
\nU.S. cents.<\/p>\n
Separately, Minister of Energy and Mineral Resources Purnomo
\nYusgiantoro said the government was sticking to its pledge not to
\nincrease domestic oil prices, despite increasing global oil
\nprices triggered by fears of a long war.<\/p>\n
Purnomo said fuel supplies for the domestic market remained
\nsecure, even after the Iraq war broke out last week, which
\nprovided no reason for the government to raise prices.<\/p>\n
\"Amid the current uncertainties, we need to do this to provide
\nthe people with comfort and certainty,\" Purnomo told reporters
\nafter a cabinet meeting.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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