PLN proposes tariff increase of between 23% to 59%

State owned electricity company PLN has proposed an increase in electricity tariff by between 23 percent and 59 percent in a bid to cope with the sharp increase in the company's operational costs resulting from the higher fuel prices.

Speaking at a hearing with the Commission VII of the House of Representatives (DPR) on Friday, PLN's president Eddie Widiono said that the increase in the tariff should begin effective no latter than January, next year. Otherwise, the company's financial condition would b getting worse and worse, he added.

During the meeting, PLN proposed several scenarios of tariff increase including;

- PLN will not increase the tariff, if the government provides it with a subsidy of Rp 38.48 trillion.

- The tariff will be increased by 23 percent from Rp 582 per kWh at present if the government provides subsidy of up to Rp 25.51 trillion. In this scenario, the tariff for subscribers of 450 VA exempt from an increase.

- The tariff will be increased by 29 percent, if the government gives a subsidy of about Rp 21.68 trillion. The tariff for users with 450 VA usages will be increased on a selective basis.

- The tariff will be increased by 39 percent, if the subsidy from the government totals only about Rp 12.98 trillion while the last option is that the tariff will be increased by 59 percent if the government refuses to provide subsidy. (dino)