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PLN's workers blame gas prices for high electricity rates
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A technician from state-owned electricity firm PLN checks electrical cables in Jakarta. (Antara/Akbar Nugroho Gumay)
T
he Workers Association of state-owned electricity company PLN has blamed the government’s decision not to cut the gas price for PLN as the reason why electricity rates are high.
The price of gas for PLN’s gas-powered power plants (PLTG) was higher than US$9 per one million British Thermal Units (MMBTU), which was more than the gas price for industries at only $6 per MMBTU, said Workers Association chairman Jumadis Abda.
“The gas price is the main contributor to the high electricity rates experienced by the people,” Jumadis said as reported by tribunnews.com on Thursday.
(Read also: Tariff rise only for non-subsidized 900-watt users: PLN CEO)
The government has decided to cut gas prices only for three industrial sectors—steel, fertilizer and petrochemicals.
He told the government to include PLN as recipient of the cut to help PLN customers have lower electricity bills.
“The high electricity rates are becoming a burden to customers,” he added.
The government has started to gradually increase the electricity rate, including the non-subsidized 900-volt ampere (VA) category, since Jan. 1, following a decision to revoke the subsidy for 18.85 million customers in this bracket.
With the new rate, customers will have to pay Rp 1,114.74 (8 US cents) per kilowatt-hour (kWh) from around Rp 605 previously. (bbn)
