PLN reiterate power price hike demand
Alfian, The Jakarta Post, Jakarta | Fri, 08/28/2009 1:28 PM
State electricity company PT Perusahaan Listrik Negara (PLN) has yet again urged the government to increase its electricity tariff.
"It's under the government's authority to raise the electricity tariff. But, for us, as a corporation, it's essential in order to improve our finances," PLN president director Fahmi Mochtar said Friday.
"With the higher tariff, the government's spending on electricity subsidies can also be reduced," he added.
He further explained that PLN expected the tariff could be increased starting 2010. PLN's average power rate is about Rp 630 per Kwh, while the average production cost reaches Rp 1,100 (11 US cents) per Kwh. The gap between the tariff and the production cost has made PLN suffer continual losses.
