Director General Of Electricity Explains The Cause Of The Increase In Customers' Electricity Tariffs Of 3,500 VA

JAKARTA - The Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, explained that the reason for the government to decide on the tariff adjustment or tariff adjustment in the third quarter of 2022 for household customers with power of 3,500 volt amperes (VA) and above.

"Household customers under 3,500 VA, Business, and Industry have fixed tariffs. This is in accordance with the direction of the Minister of Energy and Mineral Resources Arifin Tasrif who said that the implementation of this tariff adjustment was aimed at realizing equitable electricity tariffs. This means that people who can afford no longer receive assistance from the government," said Rida Mulyana to reporters, Monday, June 13.

Based on the Minister of Energy and Mineral Resources Regulation Number 28 of 2016 in conjunction with Number 03 of 2020, Tariff Adjustments are set every 3 months by referring to changes in 4 macro assumptions, namely the exchange rate, the average price of Indonesian crude oil (ICP), inflation, and the Coal Benchmark Price (HPB). .

Rida explained that the government's decision to make price adjustments was triggered by the magnitude of the four macro assumption indicators showing an increasing trend.

The realization of macroeconomic indicators on average 3 (three) months (February-April 2022) used in the implementation of the tariff adjustment in the third quarter of 2022, namely the exchange rate of Rp. 14,356/USD (originally assumed Rp. 14,350 per US dollar), ICP of 104 US dollars. per barrel (original assumption of 63 US dollars Barrel), Inflation 0.53 percent (original assumption of 0.25 percent), HPB Rp 837 per kg the same as the original assumption (price capping was applied, realization of the average Reference Coal Price (HBA) >70 US dollars per tonne).

The cost of electricity supply (BPP) is 33 percent dominated by fuel costs, the second largest after the cost of purchasing electricity from the private sector, which is around 36 percent, so that changes in the four indicators of macroeconomic assumptions greatly affect the cost of supplying electricity (BPP). In the end, this will also have an impact on the calculation of the Tariff Adjustment," explained Rida.

Household customers R2 with a power of 3,500 VA to 5,500 VA and R3 with a power of 6,600 VA and above have the tariff adjusted from Rp. 1,444.70 per kWh to Rp. 1,699.53/kWh, with an average increase in accounts of Rp. 111,000/month for R2 customers and IDR 346,000/month for R3 customers.

Government customers P1 with a power of 6,600 VA to 200 kVA and P3 the tariff is adjusted from Rp1,444.70/kWh to Rp1,699.53/kWh, with an average increase in accounts of Rp978,000/month for P1 customers and Rp271,000 /month for P3 customers.

Government P2 customers with power above 200 kVA have the tariff adjusted from Rp1,114.74/kWh to Rp1,522.88/kWh, with an average increase in accounts of Rp38.5 million/month.

Rida said that data from the Fiscal Policy Agency showed that the adjustment of electricity rates for the R2, R3 and Government customer groups in the third quarter of 2022 had a small impact on inflation of around 0.019 percent.

He hopes that the small impact on inflation can help maintain people's purchasing power.