NGOs propose a 55 percent hike in electricity tariff; House rejects proposal, demands govt to disclose PLN audit
Wednesday, February 9 2000 - 04:00 AM WIB
Non-governmental organizations (NGOs) which are included in the government-sponsored electricity tariff committee proposed on Tuesday a 55 percent hike in the electricity tariff, the Bisnis Indonesia daily reported.
"The 55 percent hike will create a better tariff structure," said Tri Mumpuni Iskanda, head of the committee during a hearing with the House of Representatives commission VIII on mining and energy.
Legislators were surprised by the proposal as it was much higher than the 35 percent increase proposed by the government.
"I'm surprised by the tariff increase proposed by the NGOs. I think the NGO's have been contaminated by the policy makers," said head of commission VIII Irwan Prayitno.
He said that the 55 percent hike doesn't reflect the real condition in the society.
Separately, head of the House electricity tariff team Pramono Anung was quoted by the Media Indonesia daily as saying that the House would not allow the government to raise the electricity tariff unless the government disclose the findings of international auditor Arthur Andersen on the Rp 5.26 trillion inefficiency at the state electricity firm PLN.
Pramono said that the government must explained the causes of the inefficiency and the people responsible for it. He added that the House wanted to make sure that the increase in the electricity tariff was not meant to cover for the losses resulting from PLN's contract with independent power producers.
Pramono also indicated that the House would only agree to a gradual increase in the electricity tariff to minimize the burden of the people. He said that the maximum tariff increase was ideally 15 percent, raised in three stages.(*)