PLN Batam to raise tariffs by between 15% and 20%

State electricty firm PT PLN is considering to raise electricity tariffs by between 15 percent and 25 percent to its business and industrial customers in Batam in a bid to cope with the surge in diesel oil prices, Bisnis Indonesia reported on Tuesday.

PLN Batam's president director Eri Efriyandri said in Batam on Monday that the tariff increase which would only affect business and industrial customers had been in principle approved by the local authority and legislative council.

Under the existing plan, PLN Batam has two tariff increase scenarios; the first is an increase by between 20% and 25% and the second one is between 15% and 20%, Eri said.

The increase in the diesel oil price to Rp 5,480 per liter from Rp 2,200 per litter, beginning Aug.1 has increased the operation costs of the electricity company to Rp 22.5 billion from Rp 12.5 billion.

Eri said that if the tariff is increased by between 20% and 25%, PLN's sales in Batam would increase by about Rp 6.2 billion, while if the tariff is increased by between 15% and 20%, the additional sales would reach Rp 4.8 billion. (*)