Electricity rates up again

Electricity rates up again

U.S. aggression in Iraq might have diverted Indonesians' attention away from their economic burden. Many of us may have forgotten that electricity charges increased by an average of 6 percent on April 1.

The government has agreed that electricity rates shall increase by an average of 6 percent every three months. This will obviously become a burden for citizens in their daily lives.

Businesses have also been affected. Amid weakening exports, the increase in electricity rates will worsen the situation. Production costs will also rise, forcing producers to increase the price of their products. In such a situation imported goods become very competitive.

The domestic market also weakens under such circumstances.

The problem will seem worse for consumers when they realize that state electricity company PLN has yet to improve its professionalism, despite steady increases in electricity rates.

In several parts of Sumatra the electricity supply is regularly cut off once a week.

There is always a classic reason for PLN to increase tariffs: Its operational costs are higher than the price of the power sold to its customers. This has been blamed for the financial losses of PLN.

It might be wise for the government to review its decision to increase electricity charges.

-- Republika, Jakarta