DPR Asks PLN To Not Only Adjust Tariffs, But Also Operational Efficiency

Illustration of a resident checking a prepaid electricity meter in Jakarta. (Photo: ANTARA)

JAKARTA - Member of Commission VII DPR RI Mulyanto asked PLN not only to adjust electricity tariffs but also to have the courage to carry out large-scale operational efficiency in order to ease the burden of subsidies.

"PLN should not only rely on increasing electricity tariffs for household customers to improve service and financial performance, but the main thing is that it is obliged to continuously improve its operational efficiency, so that PLN's electricity production costs (BPP) decrease," said Mulyanto in a statement in Jakarta, Wednesday. June 15.

According to Mulyanto, if this happens, it will not only benefit PLN but also the electricity customer community.

He added that this step is a strategic matter that needs attention and priority for PLN's business going forward.

"One of the crucial ones is the reduction in the electricity surplus of PLN, especially in Java and Sumatra. With the take or pay (TOP) clause aka 'use or not use, pay' in the electricity contract, the existing surplus of electric power becomes a burden to be paid PLN," he said.

Mulyanto reminded that the larger the electricity surplus, the greater the burden on PLN.

"Plus, with the start of the operation of the new Steam Power Plant (PLTU) as a result of the 35 thousand MWe program, it will practically add to the electricity surplus and will squeeze PLN even more," explained Mulyanto.

For that, he said, PLN must dare to urge the private electricity company (Independent Power Producer) to put the brakes on the increase in electricity surplus from the new PLTU.

"Another thing that needs to be done by PLN is the efficiency of the operation of PLTD (Diesel Power Plant). Although in terms of the amount of power, the contribution of PLTD is not large, but its role in PLN's electricity BPP is quite significant," he said.

Moreover, when world oil prices soared, the burden of this PLTD also increased. In contrast to PLTU, although world coal prices are high, with the implementation of the Domestic Market Obligation (DMO), the price of coal for PLN is set at 70 per tonne of US dollars.

Previously, PT PLN (Persero) conveyed that the government's policy of increasing the electricity tariff for household groups with a power of 3,500 volt amperes (VA) and the government with a power of 6,600 VA-200 kilo volt amperes (kVA) was an effort to realize a fair electricity tariff.

According to PLN, so far the government has provided subsidies and compensation to all tariff groups, while the assistance should have been given to groups of people who are entitled, namely those who are less fortunate.

"The application of compensation is returned to the philosophy of government assistance, which is intended for poor families. This is not an increase in tariffs. This is an adjustment, namely assistance or compensation must be received by families who are entitled to receive it," said PT PLN (Persero) President Director Darmawan Prasodjo.

He explained that the adjustment was an effort by the government to distribute subsidies and compensation according to their designation so that there would be a fair electricity tariff.

Darmawan further said that since 2017 there has been no increase in electricity rates for all customer tariff groups.

In order to maintain this, the government has disbursed electricity subsidies of Rp. 243.3 trillion and compensation of Rp. 94.17 trillion from 2017 to 2021.

However, during that period, the well-to-do community, namely household customers of 3,500 VA and above also received the government assistance.

At least, the total compensation for the category of capable customers in the 2017–2021 period reached Rp4 trillion.

"This year, we are facing global turmoil which has resulted in an increase in the cost of electricity supply (BPP). Every USD 1 increase in the price of Indonesian crude oil (ICP) results in an increase in BPP of IDR 500 billion, so that in 2022 the government is projected to prepare compensation of IDR 65.9 trillion. , said Darmawan.