Electricity tariffs for 450 VA will increase by 20 percent

The government and the budgetary commission of the House of Representatives have agreed to reduce the subsidy for the supply of electricity to low-income customers to Rp 4.5 trillion for the 2003 state budget, Republika daily reported on Monday.

The cut in the subsidy will mean the increase in the electricity tariff to customers of 450 Volt Ampere (VA) by between 15 percent and 20 percent.

The chairman of the House?s budgetary commission, Abdullah Zaini, said in Jakarta over the weekend that the tariff of the electricity for customers of 900 VA or more would be based on market prices. "There will be a tariff adjustment for every three months," he added.

The electricity subsidy of Rp 4.5 trillion is one of several alternatives proposed by the government. In addition to this scenario, the government also proposed to other subsidy alternatives ranging from Rp 6.5 trillion and Rp 5.5 trillion. (*)