Govt rapped over planned hike in electricity tariffs

Govt rapped over planned hike in electricity tariffs

JAKARTA (JP): A number of legislators want the government to
consult the House of Representatives (DPR) every time it plans to
increase billing rates of electricity, which affects the interest
of the public.

"As electricity directly affects the interest of the public,
any plan to increase its billing rates should be brought to the
House's Commission VI for open discussion," Bachtiar Achmad, a
member of the commission which deals with energy, mining and
manufacturing said Saturday.

Distribution of electricity in the country is mostly
monopolized by the state electricity company PLN but its billing
rates are determined by the government through a ministerial
decree.

Bachtiar and Ali Hardi Kiaidemak, both of the United
Development Party (PPP) faction, told The Jakarta Post that the
faction will ask the House to summon executives of PLN and
officials of the Ministry of Mines and Energy to discuss its plan
to ask for an increase in electricity rates by about three
percent to 11 percent next month.

Commission leaders representing all the four factions -- the
dominant Golkar, PPP, the Indonesian Democratic Party (PDI) and
the Armed Forces (ABRI) -- have reportedly supported the plan.

"The plan should be deliberated by the commission in an open
session, not in a close-door meeting with faction leaders at the
House," Bachtiar said.

Profit

In a closed-door meeting with the House on Oct. 8, Minister of
Mines and Energy I.B. Sudjana reportedly said that increasing
electricity rates will help increase PLN's annual profit by Rp
240 billion (US$110 million), which can be used to finance the
electrification of 2,100 villages in the country.

Meanwhile, Tadjudin Noer Said of the Golkar faction remarked
that Golkar should have not made any statement supporting the
planned rise in electricity tariffs because neither the
government nor PLN has made any formal proposal to the House.

Fearing that this case would be a bad precedence for the
government, Tadjudin suggested that the government bring up all
important issues dealing directly with the people, including
electricity billing rates, to DPR at the beginning of every year,
when the president presents the government's projection of its
spending for the coming fiscal year.

"So, when the government thinks that electricity rates should
be increased, it should make the projection long before it
happens," Tadjudin said.

Budi Hardjono of the PDI faction suggested that PLN improve
its efficiency before increasing its billing rates, which will
burden the public.(rid)