Textile producers threaten to sue PLN over tariff increase

The association of Indonesian textile producers (API) has threatened to take a legal action against state owned electricity company PLN for unilaterally raising the rates for the power used during peak hours.

Speaking during a hearing with members of the House of Representatives (DPR) on Wednesday, the association’s chairman Benny Soetrisno said that PLN’s decision to charge higher tariffs during peak hours was not only irrational but also against the law.

“The change in the electricity tariffs should be made by the President upon approval of the House,” he was quoted as saying. He said that the association strongly opposed the new tariffs and planned to sue PLN at the state administration to annul the decision.

In a bid to cope with the shortage of the power supply, PLN has recently imposed different tariffs for the power used by industries. The tariff during peak hours, for example, has been set much higher than those charged in normal times to encourage industries to carry out their production activities in non-busy hours such as after midnight and early in the morning.

“With the new policy, PLN is asking us to close our production activities,” he said.

Beny also said that the association’s members would also demand a financial compensation over the losses caused by the power blackout which lasted for more than seven hours on Aug. 18. (godang)