DMETI Member: Power Wheeling Scheme Potentially Increases Electricity Tariffs

Illustration. (Photo: Doc. Antara)

JAKARTA - Member of the Indonesian Renewable Energy Community Council (DMETI) Riki Firmandha Ibrahim assessed that the discussion of the power steering scheme in the Draft New Energy and Renewable Energy Bill (RUU EBET) has the potential to increase the basic electricity tariff.

"In the discussion of the EBET Bill, there are still strong indications that force wheeling schemes into this bill. This will risk raising the basic electricity tariff and increasing the subsidy budget provided by the state," he said in Jakarta, quoted from Antara, Sunday, September 8.

Riki, who is also the former President Director of PT Geo Dipa Energi (Persero), explained that the entry of power steering risks making the price of renewable energy electricity different from the electricity price set by the government.

"The distribution process will also make the energy cost even more expensive because the state will find it difficult to determine the basic electricity tariff," he said in his statement.

For this reason, he hopes that the EBET Bill will focus more on incentives given to new and renewable energy developers, instead of legitimizing the liberalization of the electricity system.

According to him, the discussion of the EBET Bill should also focus on how renewable energy technology can run in Indonesia. "This is in line with the provision of incentives for renewable energy technology," he said.

With this incentive policy, he stated that he believes the benefits generated will be greater for economic development or development through the GDP, especially in the future there will be a carbon tax, there will be green loans, and so on.

"With the carbon tax generated from the EBET Bill, the regulation will benefit the community. It's not even detrimental to the community by weighing on high electricity rates," he said.

He emphasized that the discussion that included the power steering scheme in the EBET Bill made it not right on target, therefore the DPR and the government should side with the community.