PLN to delay power price hike for 2004

State electricity firm PLN has planned not to raise power tariffs in 2004 in hopes of minimizing possible social unrest caused by heated competition among general election contestants, Kompas daily reported Wednesday.

?Next year?s general election requires political and security stability,? PLN president director Eddie Widiono was quoted as saying Tuesday.

Eddie said however the government had the final say over PLN?s plan of not increasing electricity tariffs in 2004.

The government had raised power tariffs for industrial and household consumers every three months since early 2002.

The tariff increase is meant to make the country?s power sector more attractive to foreign and local investors. Electricity tariffs had been planned to increase the commercial level in 2005.

Eddie said PLN still could make profit of an estimated Rp241 billion (US$=Rp8,460) in 2004 despite its decision to delay power price increase.

Meanwhile, parliament member Cecep Rukmana urged PLN not to increase electricity prices for this year?s fourth quarter because they had now reached nearly 7 US-cent per kWh. It was higher than those in in some ASEAN countries, Cecep argued. (*)