PLN to cut down power tariff ahead of presidential election
Saturday, February 16 2019 - 05:30 AM WIB
State-owned electricity company PT PLN will cut down the electricity tariff for some 21 million low income households customers (R-1/RTM 900 volt ampere customer category).
Kontan reported on Saturday that starting March of this year, the electricity tariff of the R-1/RTM 900 VA customer category will be reduced to Rp 1,300 per kWh from Rp 1,352 per kWh.
PLN Vice President for Public Relations Dwi Suryo Abdullah was quoted by the paper as saying that the lower tariff has been made possible following a decrease in oil price, strengthening value of the rupiah against the US dollars, and efficiency measures made by the utility.
While PLN has yet to unveil its 2018 financial report, the utility as per end September suffered net loss of Rp 18.48 trillion as the government has not allowed the company to increase tariff despite tumbling value of the rupiah and rising fuel prices last year.
The plan to lower the power tariff comes ahead of presidential election this year, where incumbent President Joko Widodo is seeking for a second office term.
State-owned oil and gas firm PT Pertamina has also earlier cut down the retail price of its fuel products.
Fabby Tumiwa, Executive Director of Institute for Essential Service Reform, was quoted by the paper as saying that the lower tariff policy will not cause much harm to PLN’s revenue. “The value is less than Rp 500 billion for one year,” he said. (*)