PLN to charge higher tariff during busy hours

State owned electricity company PLN may impose a higher tariff to industries using electricity more than their daily average during busy hours in a bid to curb the sharp increase in the power consumption in the country, Bisnis Indonesia reported on Wednesday.

PLN's Director for Commercial and Customers Services, Anwar Aritonang said in Jakarta on Tuesday that industries would be asked to reduce the use of electricity during busy hours.

"If during the busy hours, their electricity usage is higher than the average they will receive a penalty in the form of a higher tariff," he said. "The penalty tariff could range from 40 percent to 100 percent higher than the normal rates," he added.

As part of the program, PLN will also provide incentives to industries that are willing to shift their high-energy activities from peak hours to normal hours. They will, for example, receive more electricity supply from PLN as part of the incentives.

Several major industries such as Krakatau Steel and Indocement have shifted their high energy usage to normal hours. The shifting has resulted in the sharp drop in the use of the electricity in the two companies during busy hours. (*)