API, Gapbesi accuses PLN of betraying agreement on electricity tariffs
Tuesday, September 12 2000 - 03:30 AM WIB
The Association of Indonesian Textiles Producers (API), and the Association of Indonesian Steel Producers (Gapbesi) have accused state electricity firm PT PLN of betraying an agreement they made on August 8, 2000, on the gradual implementation of the basic electricity tariffs for industries.
API secretary general Irwandy Muslim Amien and Gapbesi executive Ismail Mandry said in Jakarta on Monday that there was an understanding in a meeting on August 8, attended by representatives of API, Gapbesi, the Ministry of Industry and Trade and PLN on the issue of electricity tariffs.
The meeting concluded that basic electricity tariff increase cannot be changed, but its implementation must be pursued gradually. And this meeting conclusion would be brought to a Cabinet meeting to get a definite decision.
Both Irwandy and Ismail expressed concerns with PLN's threats that the state electricity firm would cut electricity supplies to companies that as of end of September do not heed with new basic electricity tariffs that have been implemented since April 1, 2000.
PLN's marketing director Eddie Widiono said that PLN opens opportunities for corporate customers to negotiate over the new electricity tariffs. PLN offers them with discount. Eddie noted that out of 54 customers wanting reduction in electricity tariffs, 36 had sealed an agreement and 18 were still under negotiations.
Nevertheless, Irwandy said that the discount offered by PLN was given only to small and medium enterprises, using 1-4 tariff categories. He noted what the businessmen wanted was an across the board discount, for all businesses.
Irwandy suspected that PLN had actually suffered losses not from subsidizing electricity for businesses, but from its inefficiencies and high electricity tariffs it must pay to private independent power producers.
"PLN must explain the cause (of its losses), whether the losses are is caused by the subsidies or inefficiencies due to its contracts with third party. It is not fair to burden its inefficiencies to businesses," Irwandy said. (*)