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View all search resultsThe feud between state electricity company PT PLN and business owners over new power tariffs heated up Friday
he feud between state electricity company PT PLN and business owners over new power tariffs heated up Friday.
The Indonesian Employers Association (Apindo) issued a letter requesting all its members throughout the country pay their electricity bills using the old tariffs until an official decision on new tariffs was made by the government.
Apindo chairman Sofjan Wanandi told The Jakarta Post that PLN could not unilaterally enforce its policies on power tariffs without acquiring approvals from the government and the House of Representatives.
“We will wait for the government’s decision. We hope that next week we will have certainty on electricity tariffs for industries,” he said in a telephone interview.
In early January, PLN announced that it would remove the cap to limit the price increase for industrial users following the introduction of new tariffs in June last year. The cap removal, which will result in an increase of the power tariff by between 2 and 12 percent, has drawn strong rejection from businesses.
Sofjan claimed the cap removal would kill tens of thousands of micro — and small-scale enterprises across the nation, therefore expecting PLN and the government not to raise the power tariffs this year.
“If the government and PLN want to increase power tariffs, they have to discuss the plan first with us,” he emphasized.
In the letter, Apindo says that Energy and Mineral Resources Minister Darwin Zahedy Saleh has ensured that PLN will not raise the tariffs for industries whatever the reason is and the company has to maintain the 18 percent cap.
The Energy and Mineral Resources Ministry issued a ministerial decree on new power tariffs in June 2010 under which industrial users were to experience an increase in their electricity costs by between 20 percent and 30 percent.
Due to nationwide protest from industries, the government, PLN and the House then agreed to cap the increase at 18 percent.
PLN commerce division head Benny Marbun said his company would stick to its plan to disconnect connections for industries rejecting to pay using the new tariffs. He said industries had until Feb. 20 to pay if they wanted to continue receiving power supply. “We understand industrial customers’ concerns, so we plan to talk one-by-one to those still rejecting to pay using the new tariffs,” Benny said.
He said PLN would listen to industries directly, identify their difficulties and try to find solutions.
According to PLN, only 25 percent or 9,771 of 38,449 industrial customers enjoyed the cap. The implementation of the cap was estimated to reduce the company’s revenues by Rp 1.8 trillion, he continued.
PLN data shows that, if calculated based on the ministerial decree, the average tariff paid by industrial
customers is Rp 729 per kilowatt
per hour (kWh). However, industries enjoying the cap pay only
Rp 715 per kWh.
PLN has repeatedly voiced its concern that applying different tariffs might hamper fair business competition and lead to the breaching of the 1999 Anti-monopoly and Anti-unhealthy Business Practice Law.
— JP/Rangga D. Fadillah
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