Electricity price hike won?t affect low-income consumers: Official
Thursday, September 13 2012 - 01:29 AM WIB
The government?s plan to hike electricity tariff next year will not affect low-income consumers subscribing small capacity of 450 VA and 900 VA, Vice Minister of Energy and Mineral Resources Rudi Rubiandini said.
Rudi said that according to the government?s estimate, this category covers about 39 million consumers of mostly low-income households. If each household consists of about 3 people, there will be about 100 million people who will continue to enjoy a relatively low electricity tariff next year.
He said that the higher electricity tariff will only affect higher-income household consumers, industries/businesses, and government offices.
The government plans to increase electricity tariff next year by an average of 15 percent in a bid to reduce costly subsidy. The proposal is scheduled to be discussed with the House of Representatives on Monday, Rudi said.
He said that increasing the electricity tariff is also part of measures to help state electricity company to have sufficient funds to make badly needed new investment in the electricity sector as the country strives to increase electrification ratio.
If the proposal is approved by the lawmakers, the electricity subsidy will reach Rp 78.63 trillion. But if it?s not approved, the subsidy will inflate to Rp 93.52 trillion.
Editing by Reiner Simanjuntak