Wed, 19 Oct 1994

The new electricity tariff

The State Electricity Company's (PLN's) plan to raise its power tariffs has met few obstacles this time. Unlike on earlier occasions, the involvement of members of the House of Representatives has been greater with this plan.

Another aspect that makes the current rate increase plan different from earlier ones is that this time the increase will not be effected all at once. Every three months the rates will be increased by 0.04 to 0.05 percent in order not to jolt the public.

Obviously this new mechanism and method does not guarantee that there will be no reactions. The problem is that any increase in tariffs, however small, will be felt as a burden. Therefore the government should pay due attention to the suggestion made by the House of Representatives that this increase in rates be balanced by an improvement in the PLN's services and in the company's management.

It must be admitted that the improvement in the PLN's services has been quite convincing lately. Requests for new connections or for an increase in capacity are quickly looked after.

Nevertheless, there are still complaints. Sudden blackouts or fluctuations in the line voltage, for example, still frequently occur.

True, all this is not entirely the PLN's fault. The public is also quite often to blame, as in cases of theft or illicit power tapping. In any case, however, it is the PLN's duty to do something about it.

-- Republika, Jakarta