PLN has poor calculating system: Kuntoro

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)