PLN has poor calculating system: Kuntoro

JAKARTA (JP): Minister of Mines and Energy Kuntoro Mangkusubroto has blamed extreme increases in power prices on a poor calculating system applied by the state-owned electricity company (PLN).

"I have checked the situation and found out that it (the extreme rise in power prices) has been caused by a poor calculating system," Kuntoro said.

He said PLN hired outside contractors to record and calculate power usage from clients' electricity meters at a commission of Rp 85 (0.5 U.S. cents) per client.

The commission makes the contractors reluctant to send personnel to each meter to record the actual power usage. Instead, the contractors usually estimate the power usage based on as many clients as possible to obtain a huge commission.

"I call on PLN to immediately improve the system," Kuntoro said.

The government raised power prices an average of 20 percent from last month. Tariffs for households were increased 38 percent and 40 percent

Under the new price rates, households using between 450 volt- ampere (VA) and 2,200 VA must pay a power load fee of Rp 11,500 per kVA per month separate from a power utilization fee of between Rp 109 and Rp 149.5 per kilowatt hour (kwh) per month.

Many PLN costumers, however, claim that their power bills have been raised up to 200 percent.

The Indonesian Consumers Foundation (YLKI) has called on the public to use power more efficiently, saying that electricity waste was one reason behind the extreme price increase.

The association also suggested people lower the installed power load in their houses to reduce their power bills.

Kuntoro criticized PLN for charging each client Rp 100,000 for lowering their installed power load.

"I am disappointed to find that PLN is making such charges amid the current crisis," Kuntoro said.

The government has raised power prices to increase PLN's earnings, which have not been enough to cover increased costs due to the crisis.

The rupiah's sharp depreciation against the dollar since last July has left PLN with more than Rp 500 billion in losses last year. Losses were projected to reach Rp 11 trillion if power prices were not increased. (jsk)