GOVT CONTINUING PRESSURE ON PLN TO POSTPONE TARIFF INCREASE

Jakarta, Feb 23 (ANTARA) - The government continues to persuade state-owned power utility firm PLN to postpone its plan to raise its tariff for 6600 Volt-Ampere (VA) customers, an official said.

Director General of Electricity and Energy Utilization, J. Purwono said PLN needed to postpone the tariff increase until it had familiarized the public and consulted the House of Representatives (DPR) about it.

He said PLN should familiarize the public in a better way than in the past and consult the House's Commission VII on energy affairs.

"Anyway, we still think that PLN should postpone the tariff increase until it has familiarized the public properly and consulted the House," he said after attending a coordination meeting in the Office of the Coordinating Minister for Economic Affairs on Tuesday.

Purwono said the proposed introduction of a new electricity tariff for wealthy customers would be discussed at a meeting of the House of Representatives' Commission VII.

"It is the House which will decide it. So, just wait for the recommendation of Commission VII," he said.

Previously, PLN had decided to push through its plan to apply a new tariff to customers of over 6600 VA, while continuing to consult with the House Commission VII.

The PLN's reasons for taking the decision was that if it postponed the implementation of new rates for wealthy customers it would be violating Law No. 47 / 2009 on the 2010 State Budget.

It was said in Article 8, paragraph 3, point D of the law that the basic power rate will be applied automatically based on the economic price of energy consumption of over 50 percent of the national average for households (R) customers, business (B) and the public with a capacity of 6600 VA and over.

In addition to violating the State Budget Law, the delay in the implementation of a new tariff for customers on the 6600 VA category would also increase the amount of subsidy the government would have to provide.