Electricity tariff to increase by up to 65% this year

By Godang Sitompul

The House of Representatives Commission VII overseeing the energy sector approved the government?s proposal for a gradual increase in electricity tariff this year to reduce subsidy.

The electricity tariff will increase in every two months starting May 1, 2014, to reach total tariff increase of between 38.9-64.7 percent for the whole year, said Commission VII Chairman Soetan Batoenaga during a meeting with Minister of Energy and Mineral Resources Jero Wacik and President Director of state-owned electricity firm PLN, Nur Pamudji.

He said that the tariff increase will affect corporate customers subscribing electricity with capacity of more than 200 kilo volt ampere, as well as large household customers.

Jero Wacik said that the electricity tariff will increase in May, July, September, and November, so that by the end of this year, the electricity tariff for industries is expected to reach is economical price, or no longer subsidized by the government.

Editing by Reiner Simanjuntak