PLN lowers tariff for excessive use of electricity during peak hours

State owned electricity company PLN has agreed to lower the surcharge tariff imposed on industrial users for the excess of electricity use during peak hours to Rp 27,000 per kilovolt ampere (kVA) from Rp 69,000 previously, Kompas reported on Saturday.

Minister of Trade and Industry Fahmi Idris said in Jakarta on Friday that the agreement to lower the tariff during the peak hours was achieved during a recent meeting between PLN's senior officials and representatives of industries.

"With such an agreement, PLN will no longer impose a penalty to industries using electricity above their maximal capacity during peak hours," the minister said during a meeting with executives of textile companies on Friday.

In a bid to cope with the shortage of the power supply, PLN has recently imposed different tariffs for power used by industries. The tariff for the excess of power use during peak hours (between 17.00 and 21.00), for example, has been set much higher than those charged in normal times to encourage industries to carry out their production activities in non-busy hours such as after midnight and early in the morning.

The tariff policy has caused a great financial loss to power-intensive industries, such as textile producers. As the result, the association of textile companies has threatened to take PLN to court if it refuses to withdraw the new tariff system. (*)