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PLN offers discount to boost consumption

State-owned electricity firm PLN hopes an increase in electricity consumption resulting from discounts the company offers industrial clients since March will offset a decline in demand during the Idul Fitri holiday season

Stefanno Reinard Sulaiman (The Jakarta Post)
Jakarta
Mon, May 27, 2019

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PLN offers discount to boost consumption

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span>State-owned electricity firm PLN hopes an increase in electricity consumption resulting from discounts the company offers industrial clients since March will offset a decline in demand during the Idul Fitri holiday season.

PLN estimates electricity consumption will fall between 30 percent and 35 percent in peak hours during the two-week annual holiday. Many factories are closed for a week before and a week after Idul Fitri, which falls on June 5.

Amir Rosidin, PLN’s business director for the central part of Java, said on Thursday that electricity consumption would significantly fall from the end of May until June 9, during which many factories are closed and many people travel to their hometowns to celebrate the holiday with their extended families.

PLN estimates that peak-hour electricity consumption in the Java-Bali power grid, for example, will be about 17,179 megawatts (MW), 37 percent down from the normal 27,817 MW.

“It could be below 12,100 MW in the morning of June 5, because almost all people will leave their homes to attend Idul Fitri prayers in mosques,” Amir said.

In Sumatra, peak-hour electricity consumption is expected to decline by 30 percent from 2,100 MW by to 1,470 MW during the Idul Fitri holiday season.

Lower electricity use means lower sales, which will affect PLN’s revenue. Amir estimates a 30 percent decline in revenue during the holiday season.

However, Amir said the increase in revenue resulting from the discount program could offset the decline during the two-week holiday.

From March 2019 until December 2020, PLN offers a discount of 30 percent for electricity use outside peak hours, or from 11 p.m. until 8 a.m.

Amir said the discount had proven to be effective because it increased electricity consumption of industrial users outside the peak hours.

Previously PLN had announced a temporary discount of up to 100 percent for customers fulfilling several requirements, such as a 50 percent discount for those who had registered with the PLN contact center, a 75 percent discount for customers who had an induction cooker or electrical bike and 100 percent discount for electric vehicle owners.

PLN assured the public that its grids in the Java-Bali system, Sumatra and eastern Indonesia would operate normally.

“Even though electricity demand will be lower than usual, the system’s reliability has to be maintained,” PLN West Java business director Haryanto W.S. noted.

PLN said that, to ensure the system’s reliability, the firm would inspect each power plant and strengthen transmission and distribution systems.

Amir said that, during the low season, PLN and several independent power producers (IPP) would temporarily shut down more than 20 power plants, which had a combined generation capacity of 10,000 MW.

“At least 10,000 MW of electricity supply will be cut off from the power grids.,” he added.

Deputy Energy and Mineral Resources Minister Arcandra Tahar said on Thursday’s visit that PLN had to ensure reliable electricity supply during Ramadan and Idul Fitri.

“Electricity supply is important so that people can enjoy Idul Firi with their families in comfort. Hence, we have to ensure the reliability and availability of electricity during such a special day,” he said.

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