BPK's audit on PLN's operating cost to be completed this week

The Supreme Audit Agency's (BPK) audit on state owned electricity company PLN's operating cost is expected to be completed this week, Investor Daily reported on Monday.

Minister of Energy and Mineral Resources Purnomo Yusgiantoro said in Jakarta late last week that the audit carried out by BPK, which would be used as basis to determine the percentage increase in the planned new power tariffs would be completed on March 7.

But Tjatur Sapto Edy, a member of the House commission on electricity, said that the audit would unlikely be completed so soon. "Based on the information I got, the audit would be completed in the middle of March," he said.

He also said that the House members would reject the increase in the electricity tariff if it would bring a heavier burden to the public even tough the result of the audit could justify for the tariff increase.

The government recently said that the increase in the electricity tariff would be about between 15 percent and 20 percent, much lower than the initial estimate of between 20 percent to 100 percent. It said that it would provide additional subsidy of about Rp 7 trillion on the top of the initial plan of Rp 16 trillion to reduce the power tariff increase. (*)