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PLN confirms no electricity price hike in 2015
State utility company PLN has confirmed that it will not increase electricity tariffs for consumers that use 1,300 and 2,200 Volt Ampere (VA) this year
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tate utility company PLN has confirmed that it will not increase electricity tariffs for consumers that use 1,300 and 2,200 Volt Ampere (VA) this year.
'We consider that power needs can be fulfilled by the Belawan steam and gas power plant (PLTGU) in North Sumatra, which recently received gas supplies from Arun, Aceh. So we don't think there's any need yet to increase power tariffs,' PLN senior communications manager Bambang Dwiyanto said as quoted by Antara in Semarang on Thursday.
He added that the PLTGU was supplied primarily with fossil-based fuel, meaning its operational costs had continued to soar. With the gas supply from Arun, PLN could save up to trillions of rupiah.
'Fuel has very much dominated overall operational costs we spend on power plants. Fuel accounts for between 60 and 70 percent of total special production costs,' said Bambang.
He said PLN had decided that small industries would not be imposed with tariff increases this year as well. However, it had applied tariff adjustments for large industries that used electricity up to 200,000 VA.
'The adjustments have been implemented since Jan.1,' said Bambang.
He further said the tariff adjustments for large industries were influenced by three indicators: the fluctuation of the rupiah exchange rate against the US dollar, inflation and the Indonesian Crude Price (ICP). This meant that both reductions and increases in power tariffs could occur at any time.
Based on Indonesia's economic data released by Bank Indonesia, Bambang said, PLN would issue new tariff calculations every month.
He went on that the policy was based on Energy and Mineral Resources Minister Regulation No.31/2014 on power tariffs provided by PLN.
The Energy and Mineral Resources Ministry, meanwhile, says the regulation aims to maintain the sustainability of electricity supply, to improve the quality of services for consumers, to increase Indonesia's electricity ratio and to promote a well-targeted electricity subsidy. (ebf)(+++)
