PLN awaits House approval to increase power tariff for industry

State electricity company PT Perusahaan Listrik Negara (PLN) has insisted that it would increase electricity tariff for industries despite opposition from business owners.

Benny Marbun, the head of the company?s commercial division, said in Jakarta on Monday that the state electricity company had formally asked for a permit from Energy and Mineral Resources Minister Darwin Z. Saleh to increase its power tariff.

?PLN is asked to wait for approval from the House of Representatives,? he added.

Starting early January, PLN has raised the electricity tariff for industries as part of the power tariff increase proposed in July, last year. PLN removed the price cap which was imposed last year to reduce price increase for industries.

In July 2010, the Energy and Mineral Resources Ministry raised electricity prices for industries by between 20 and 30 percent through a ministerial decree. As the policy drew massive criticism from businesses, the House of Representatives and the government asked PLN to cap the price increase at 18 percent, effective July 2010.

PLN claims that according to the agreement with the House, the cap can be lifted in January 2011. (*)