JAKARTA (TheInsiderStories) - PT Perusahaan Listrik Negara (PLN) sets the 12 electricity tariff categories that follow the mechanism Tariff Adjustment (TA) which becomes effective from October 2016. The weakening of the rupiah against the US Dollar which was accompanied by the rise in Indonesian Crude Oil Price (ICP), prompted PLN to raise electricity rates.
However, the decline in inflation withstand margin rate increase.
The Electricity Tariff adjustment is in accordance with Regulation of the Energy and Mineral Resources (ESDM) Ministry No. 31/2014, as amended by ESDM No. 09/2015. This rule stated that the adjustment imposed every month, adjust the changes in the exchange rate of the Rupiah against the US dollar, oil prices and the monthly inflation.
With TA mechanism, electricity tariff every month is possible to go down, fixed or increased based on changes in these three indicators. As a result of changes in the value of these three indicators, electricity rates in October 2016 in Low Voltage (TR) to Rp 1459.74 / kWh, electricity rates in Medium Voltage (TM) to Rp 1111.34/kWh, electricity rates in High Voltage (TT) to Rp 994.80/kWh and electricity rates in the Special Service to Rp 1630.49/kWh.
As previously known, the Electricity Rates (TTL) consists of 37 class fare. Twelve groups applied Tariff Adjustment mechanism which are not subsidized by the government. The twelve groups rates are as follows:
1. Household R-1 / Low Voltage (TR) 1,300 VA power
2. Household R-1 / TR 2200 VA power
3. Household R-2 / TR 3500 VA power to 5,500 VA
4. Household R-3 / TR over 6600 VA power
5. Business B-2 / TR 200 kVA power up to 6.600VA
6. Business B-3 / Medium Voltage (TM) power above 200 kVA
7. Industrial I-3 / TM power above 200 kVA
8. Industry I-4 / High Voltage (TT) over 30 000 kVA power
9. Government Office P-1 / TR 6600 VA power to 200 kVA
10. The Government Office P-2 / TM power above 200 kVA
11. Public Street Lighting P-3 / TR and
12. Special Services TR / TM / TT.
Meanwhile, 25 other fare classes do not change. Small household customers of 450 VA and 900 VA, small business and industry as well as the social customer is included in the rater class 25. Customers in this group can still be given subsidies by the government.
Changes in tariffs in October 2016 applies only to the consumer is able to number 12.5 million or 20% from 62.6 million consumers. Meanwhile, there are more than 50 million or 80% from the 62.6 million consumers who had no rate change.
Electricity rates in October 2016 decreased when compared to the same period the previous year (October 2015). Rates decreased in line with the decline in Basic Production Cost (BPP) and changes in macroeconomic variables. (*)