New geothermal tariff to become effective next year

The Ministry of Energy and Mineral Resource is preparing the ruling implementation ruling of Energy and Mineral Resources Minister?s decree on the increase in the tariff of electricity produced by geothermal power plants, Investor Daily reported on Monday.

Deputy Energy and Mineral Resources Minister Rudi Rubiandini said in Jakarta last week that the implementation ruling would be needed to ensure that the increase in the tariff for geothermal power plants could be implemented next year.

The minister?s decree issued several months ago raised the electricity tariff for the geothermal power plant to between 11 and 18 US cent per kilowatt hour (kWh) depending on the location of the power plants.

The government, for example, set the tariff at 11 US cent per kWh for geothermal power plants in Madura, Java and Bali, at 12 US cent per kWh for South Sulawesi, West Sulawesi and Southeast Sulawesi, and at 13 US cent for North Sulawesi, Central Sulawesi and Gorontalo, at 15 US cent per kWh for West Nusa Tenggara and East Nusa Tenggara, and at 17 US cent per kWh for Maluku and Papua.

The new tariff will be implemented only on new geothermal power plants. (*)