Govt to raise electricity tariffs this year

Antara News, Thursday, January 28, 2010 22:14 WIB

Jakarta (ANTARA News) - The government will go ahead with its plan to raise electricity tariffs this year as part of its efforts to reduce its subsidy burden, an energy official said.

The government was waiting for the proper time to raise the electricity tariffs, Director General of Electricity and Energy Utilization at the Energy and Mineral Resources Ministry J Purwono said on Thursday.

"But they are to be raised this year," he said.

He said the government had planned to increase electricity tariffs for medium- and large-scale subscribers by an average of 15 percent.

The increase in electricity tariffs for small-scale subscribers had yet to be set, he said.

"To be sure, small-scale subscribers still can afford the increase," he said.

The government had originally planned to increase the electricity tariffs in January. But President Susilo Bambang Yudhoyono then decided to put the plan on hold, he said.

"As a consequence, the president asked the finance minister to cover subsidy needed by state power utility PT PLN," he said.

Purwono said as of 2014 the government would only give electricity subsidy to small-scale subscribers belonging to 450 volt ampere (VA) class and 900 VA class.

The policy was put in the road map for the diversion of electricity subsidy to other sectors between 2010 and 2014, he said.