Power rate hike will not apply to all industries

Tuesday, July 22 2008 - 01:38 AM WIB

State owned electricity company PT Perusahaan Listrik Negara (PLN) said on Monday its planned power rate hike will not apply to all industries, Antara news agency reported.

The rate hike will only apply to industries and businesses of group three and above, Al Hilal, chief of the company`s board of commissioners, said.

"Their number is only around 8,000," he said, adding PLN now has around 35 million subscribers.

PLN is considering raising power rates for industries following the increases in the costs of power generation as a result of the rise in oil and coal prices.

The power rate for industries will be applied in the same way as non-subsidized rate for households and businesses of 6,600 VA and above, he said.

PLN is expected to raise power rate for industries to Rp 1,300 per kWh from the current Rp 600 per kWh, Alhilal said, adding the rate would fluctuate in line with coal and oil prices.

Business associations have rejected the rate hike plan, but PLN would continue to negotiate with them, according to Alhilal. (*)

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