Electricity tariffs lowered by 0.34%

Electricity tariffs lowered by 0.34%

JAKARTA (JP): The state-owned electricity company PT PLN has
decreased its tariffs by an average of 0.34 percent since this
month due to lower production costs and a lower-than-estimated
inflation rate, the company announced yesterday.

PLN's President Djiteng Marsudi told journalists that
customers would enjoy the reduced tariffs in their monthly
electricity bills as from next month.

According to Marsudi, the price decrease was made in line with
the PLN's policy of reviewing its tariffs every three months
according to the developments in its production costs and the
inflation rate.

"Our production costs have declined slightly as a result of
the increased use of cheaper natural gas in our generation,"
Djiteng said.

Moreover, he added, the inflation rate turned out to be lower
than estimated for the previous tariffs and the rupiah rate
against the dollar was relatively stable.

He said fuel oil and coal now account each for 30 percent of
PLN's power generation, water for 15 percent and natural gas,
geothermal and other energy resources for the other 25 percent.

The Secretary General of Ministry of Mines and Energy, Umar
Said, confirmed yesterday that the government had approved PLN's
decision to lower its tariffs.

But the tariffs will again be reviewed three months from now,
Said added. (04)