Indonesian Political, Business & Finance News

YLKI strongly protests planned power tariff hike

| Source: JP

YLKI strongly protests planned power tariff hike

JAKARTA (JP): The Indonesian Consumers Association (YLKI)
challenged on Wednesday state-owned electric company PLN's plan
to increase its rates.

"The public has never been made aware of the reasons for
raising electricity rates," YLKI chairwoman Indah Suksmaningsih
said during a seminar on consumer protection on Wednesday.

PLN recently asked the government to increase rates by 68
percent, but the request was rejected. Current rates for
households which use between 450 VA and 2,200 VA of electricity
are set at an average of Rp 206.22 per kilowatt-hour (kWh).

Indah said it would be better for PLN to improve its
efficiency rather than raise rates.

Association executive Tini Hadad stressed the importance of
transparent management.

"Why shouldn't PLN disclose that it has to buy fuel from
Pertamina at prices higher than the market price," Tini asked.

She also said PLN purchased expensive electric power from
private companies.

"PLN should cancel the deals because they surely have an
effect on PLN's rates," she said.

PLN's production costs range from between three to four cents
per kWh and it sells electricity to the public at an average of
between two to two and a half cents per kWh. Meanwhile, private
companies sell their electricity to PLN for between five and
eight cents per kWh.

A member of YLKI's legal staff, Donny Lanazurra, said PLN
could be taken to court in a class action lawsuit should the
company fail to provide satisfactory service to the public.

"The suit is guaranteed by the 1999 Law on Consumer
Protection," he said.

Noted lawyer Mas Achmad Santosa agreed with Donny. "Such a
class action lawsuit will reduce the paperwork. There will be a
high stack of cases if each person individually files a lawsuit."

PLN marketing director Eddi Wiriono pledged the company would
improve its service to the public.

"We didn't pay enough attention to customers' satisfaction
because we were trying to achieve our goal of keeping our rates
low, hoping the customers would be happy," he said.

"We are now shifting our paradigm by keeping our costs low and
concurrently improving our service to customers through increased
efficiency," Eddi said. (05)

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