Low electricity tariff set for poor households
JAKARTA (JP): Low-income households will still enjoy low electricity tariffs even after price increases expected next month, an official said yesterday.
Director General of Electricity and Energy Development in the Ministry of Mines and Energy Endro Utomo Notodisuryo said poor households would be allowed to apply for a special rate.
He said under the price increase proposal sent to President Soeharto, poor households could be treated as non-profit organizations.
Such organizations, including places of worship and schools, under the existing tariff regulation receive a special rate which is much lower than those charged to companies and wealthier housesholds.
Endro did not reveal the proposed new electricity tariff for this category of building, but said: "They will still enjoy a huge subsidy from the government".
Buildings owned by social organizations get a maximum power supply of 220 volt-amperes (VA) or 200 watts for a fixed monthly payment.
"The power supply is enough for a household to have several lights, a 14-inch TV set, a 40-watt fridge-freezer and even a small air conditioning unit," Endro explained.
He said that under the current system, households were not allowed to apply for the low tariff designed for the buildings of social institutions.
Instead, they have to apply for a minimum power supply of 450 VA or 400 watts.
Coordinating Minister for Economy, Finance and Industry Ginandjar Kartasasmita said yesterday that the government would increase the price of fuel this month and electricity early next month.
Endro said that under the proposed tariff increase, the government would still subsidize better-off people who use up to 2,200 VA or 2,000 watts.
But he said the government would drastically decrease subsidies -- in other words significantly hike the bills -- for wasteful users of electricity.
"Let's now start to use power efficiently to anticipate the rise in electricity tariffs," Endro said, adding that staff of the state electricity company, PT PLN, are ready to inform the public on how to use electricity efficiently.
PLN data says 90 percent of its 24.64 million customers have their electricity supplied at between 420 VA and 2,200 VA.
Minister of Mines and Energy Kuntoro Mangkusubroto and senior officials in charge of oil and electricity held a closed meeting yesterday with several members of House Commission V for industry, mining and energy at the Mulia Hotel in Senayan, South Jakarta.
Sources said the minister lobbied the commission to back the government's tariff increase plan but Kuntoro refused to confirm this.
"I just want to have lunch with new friends. I want to get to know them better," Kuntoro told The Jakarta Post on his way to one of the hotel's restaurants. (jsk)