Low electricity tariff set for poor households

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)