Govt sets electricity tariff increase 6 percent quarterly in 2003

The government said on Tuesday that the average power tariff would be increased by six percent per three months under the new tariff structure for 2003 as proposed by state electricity firm PLN.

The director general of electricity and energy development, Luluk Suniarso, said that under the new tariff structure, the average basic tariff per three month will be Rp605 per kilo watt hour (kWh) (US$=Rp8,900).

PLN had proposed a tariff increase of up to six percent quarterly in order to ensure that electricity tariff would reach its economically feasible level of seven U.S. cent per kWh in 2005.

The electricity tariff increase aims to cut government electricity subsidy, thus reducing pressures on the state budget. (godang)