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)