PLN removes power price cap despite protests

State electricity company PT Perusahaan Listrik Negara (PLN) has finally removed the power price cap to limit the power price increase for industries made in July last year despite protests from business owners.

Benny Marbun, the head of PLN?s commercial division, said in Jakarta on Tuesday that the removal of the price cap began effective in January. ?It means that beginning February, the monthly electricity bills for industry will be based on the new tariff,? he said.

Business owners have strongly protested the state electricity?s plan to remove the price cap because it would carry out the plan without the approval either from the government and the House of Representatives.

The removal of the price cap would result in an increase in the power price for industries by between 2 and 12 percent.

As widely reported in the media, the government allowed PLN to raise power price by between 20 and 30 percent in June, last year. The power price hike, however, received nationwide protests from businesses. As a compromise, the government and House agreed to cap the tariff increases at 18 percent, as of July 2010. (*)