Govt plans to raise electricity rates for 'able' customers in 2010

The government plans to raise electricity rates for "able" customers by 15 percent in 2010 after all power plants with a combined capacity of 10,000 megawatts have come into operation, an Energy and Mineral Resources Ministry official said.

Director General of Electricity and Energy Usage J Purwono said on Thursday the government would restructure electricity rates in 2010 by introducing subsidized and non-subsidized rates.

"The subsidized rates will be applied to small-scale customers and the non-subsidized rates to able customers," he said as quoted by state-owned news agency Antara.

But the government had yet to define "able customers" who would be subject to non-subsidized rates, he said.

Once the power plants with a combined capacity of 10,000 were operational, the production cost of electrity (BPP) supplied by state electricity company PT Perusahaan Listrik Negara (PLN) was expected to fall by around Rp 250 to Rp 700 from Rp 950 per kWh, he said.

Therefore, the difference between the BPP and the basic electricity tariff (TDL) which currently stands at Rp 630 per kWh would become increasingly smaller, he said.

"So, even if the non-subsidized rates are raised the increase will not exceed 15 percent from the current rates," he said.

He said the non-subsidized rates were set on the basis of BPP in each region, he said.

A region which is rich in energy sources would have low BPP or the other way around, he said.(*)