No Increase In Electricity Rates To 900 VA Next Year

A PLN officer is installing an electrical installation (Photo: pln.co.id)

JAKARTA - The Ministry of Energy and Mineral Resources (ESDM) decided not to make price adjustments to electricity customers for the 900 Volt Ampere (VA) class for Affordable Households (RTM) on January 1, 2020. This decision was confirmed by the Minister of Energy and Mineral Resources Arifin Tasrif after considering economic stability. and maintain people's purchasing power.

"There is no (increase) yet. We will maintain stability first," said Arifin, as quoted from the official website of the Ministry of Energy and Mineral Resources, Sunday, December 29.

The policy plan for this tariff adjustment, continued Arifin, is considered by the Government not yet necessary even though PT PLN (Persero) is submitting a request for adjustment to the Ministry of Energy and Mineral Resources.

The government asked PLN to verify the 900 VA customer data beforehand accurately so that the policy of increasing the tariff is right on target.

"We are still carrying out more detailed data collection so that we don't get the wrong target. Until PLN prepares the data. We have to go through a lot of these (institutions)," said Arifin.

Later, PLN's customer data collection will be adjusted to the data held by the Central Statistics Agency (BPS) regarding the number of high-income household customers. According to PLN data as of October 31, 2019, the number of 900 VA-RTM customers was recorded at 22.1 million. As for 2020, the number of subscribers is projected to reach 24.4 million.

The self-subsidized 900 VA RTM electricity tariff is IDR 1,352 per kilo Watt hour (kWh) with 24.4 million subscribers. Meanwhile, the tariff for the non-subsidized category of 1,300 VA to 6,600 VA and above is pegged at IDR 1,467.28 per kWh.

Even so, the policy of canceling the electricity tariff increase will not provide additional electricity subsidies so that it does not burden the 2020 State Budget (APBN). Arifin also encourages PLN to be able to increase efficiency, one of which is by reducing consumption of fuel oil (BBM) in power plants. electricity.

"There are still many things that can be saved. We aim to immediately convert it to cheap energy. That way it can be more efficient," he explained.

Another step is to prepare regulations related to the extension of the special coal price policy in the country (Domestic Market Obligation / DMO).

"Through this regulation we want to keep electricity rates from rising because the global economy has not improved so we need to keep the industry up," added Arifin.

It was decided that the DMO target was still 25 percent of coal production and the price was US $ 70 per ton. "Still, it continues to be stable. Yes (no change in rules), it's the same (25 percent)," said Arifin, who stated that he had prepared the DMO regulatory framework.

For information, the DMO is regulated through the Ministerial Decree (Kepmen) of ESDM No. 1410 K / 30 / MEM / 2018. Based on the Minister of Energy and Mineral Resources Decree No. 1410 K / 30 / MEM / 2018, the coal price for PLN is also set at a maximum of US $ 70 per ton.