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Govt to postpone power rate increase JAKARTA - The government has decided to postpone its plan to raise the basic electricity tariff by three percent per quarter beginning May 1, a minister said.

Energy and Mineral Resources Minister Jero Wacik, after a hearing with the House of Representatives (DPR)`s Commission VII on energy affairs here on Wednesday, said the plan was postponed because the public would also have to bear the burden of the fuel oil price hike from April 1.

"The people`s burden will become heavier if the power rate is also increased so we have decided to postpone it," the minister said. He added that at the meeting, all factions of the House, including the ruling Democrat Party, asked the government to postpone it.

Milton Pakpahan of the Democrat Party said he could understand the need to raise the electricity tariff. "But it is not the right time to do it now," he added. Other commission member Bambang Wuryanto of the Indonesian Democratic Party of Struggle (PDIP) said the government should not double the burden of the people after it raises fuel oil prices in April.

"We can consider the plan to raise power tariff in the last quarter of 2012," he said. The government had earlier planned to increase the electricity tariff by three percent per quarter in May, August and November 2012, with an expected efficiency value of Rp4.65 trillion.

Based on the government`s scenario, the need for subsidy in January-April 2012 reaches Rp31.4 trillion, in May-July 2012 Rp22.62 trillion, in August-October Rp21.66 trillion and in November-December 2012 it amounts to Rp13.78 trillion.


Related blog entries (category 'Economy') Related blog entries (category 'Economy'):
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29 February 2012 · Hundreds of ex-PTDI employees migrate to Malaysia
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Related blog entries (category 'Economy') Tags: delay, hike, rate, price, power, PLN


Posted in Economy @ 15 March 2012 02:41 CET by Blog Bot · 'Blog' RSS feed · permalink






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