Electricity Rates Rise As Of July 1, Here's A List Of 5 Classes

Illustration of workers installing and repairing high voltage electrical installations (Dok PLN)

JAKARTA - The government through the Ministry of Energy and Mineral Resources has decided to adjust the electricity price starting July 1.

This adjustment only applies to non-subsidized household customers of groups R2 (3,500-5,500 VA), R3 (6,600 VA and above) and P1 (6,600 VA to 200kVA), P2 (200 kVA and above), and P3.

The Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, said that government assistance was provided for all classes of customer tariffs, in the form of subsidies and compensation.

This decision is contained in the Letter of the Minister of Energy and Mineral Resources No. T-162/TL.04/MEM.L/2022 dated 2 June 2022 concerning Adjustment of Electricity Tariffs (July–September 2022 Period).

The government's decision to adjust the electricity tariff for customers of 3,500 VA and above was due to the increase in the magnitude of the four macroeconomic indicators.

"Tariff adjustments are not illegal to do because they have been carried out since 2014 based on tension," Rida said at a press conference in Jakarta, Monday, June 13.

Rida said, in order to maintain people's purchasing power, competitiveness of the industrial and business sectors, control inflation, and strengthen national economic stability, the tariff adjustment was only applied to well-to-do households which amounted to 2.09 million customers or 2.5 percent of the total PLN subscribers. reached 83.1 million.

Also to the government group which amounts to 373,000 customers or 0.5 percent.

Meanwhile, for household customers with power below 3,500 VA, business and industry, there is no change in tariffs.

PLN President Director Darmawan Prasodjo stated that this tariff adjustment was carried out in order to realize a fair electricity tariff in which compensation is given to the people who are entitled to it, while the community is able to pay the electricity tariff according to the economy.

"The application of compensation is returned to the government's philosophy of aid, which is intended for poor families. This is not an increase in tariffs. This is an adjustment, in which the assistance or compensation must be received by families who are entitled to receive it," said Darmawan.

He revealed, since 2017, there has never been an increase in electricity rates for all customer tariff groups.

To ensure that there is no increase in electricity rates, the government has disbursed electricity subsidies of Rp. 243.3 trillion and compensation of Rp. 94.17 trillion from 2017 to 2021.

In the implementation process, he continued, affluent community groups, namely household customers of 3,500 VA and above, also received compensation in a relatively large amount.

During 2017–2021, the total compensation for these customer categories reached Rp 4 trillion.

"Moreover, this year we are facing global turmoil which has resulted in an increase in the cost of providing electricity (BPP). Every increase in the price of Indonesian crude oil (ICP) of USD 1 will result in an increase in BPP of IDR 500 billion. So that in 2022 alone, the Government is projected to need to prepare compensation of Rp. 65.9 trillion," he concluded.