Discuss The Proposal For Increased Industrial Electricity Tariffs, PLN And The Ministry Of Energy And Mineral Resources To Collect Entrepreneurs In Batam

Residents check the prepaid electric meter before being refilled in Jakarta. (Photo: Doc. ANTARA)

JAKARTA - PT PLN together with the Directorate General (Dirjen) of Electricity, the Ministry of Energy and Mineral Resources (ESDM) conducted a Public Hearing regarding the proposed increase in electricity rates for the industry in Batam.

The Director of Electricity Business Development, Director General of Electricity, Jisman P. Hutajulu, this activity is to obtain responses from business actors, supervisors for the implementation of public services, customers and other elements regarding the proposal for the application for determination of industrial electricity rates at PT PLN Batam.

The growth in electricity sales at PLN Batam until August 2022 shows a very positive trend. Electric consumption soars when compared to year on year from the previous year. This year the consumption growth of electric Batam PLN rose 15.46 percent when compared to the previous year which was only 4.08 percent. We can mean that the condition of electricity at PLN Batam has started to return to normal. The government hopes that in the future it will be more positive so that it will be able to encourage economic growth, especially for industrial and business customers," said Jisman in a statement quoted on Wednesday, October 12.

Jisman added, as a subsidiary of PT PLN (Persero), PT PLN Batam does not receive subsidies and compensation such as national customers.

Therefore, he continued, it is necessary to understand that Batam's electric tariff is different from the national electricity tariff.

"By being inaugurated Law Number 11 of 2020 concerning Job Creation, which was followed by the issuance of Ministerial Regulation Number 10 of 2022 so that the determination of the electricity tariff of PT PLN Batam, which was previously in the Provincial Government, returned to the Central Government, in this case the Ministry of Energy and Mineral Resources and the Director General of Electricity," he added.

In determining electricity rates, said Jisman, the government always pays attention to the balance between national interests, regions, consumers, business actors and utilities.

The balance that applies is like a balance sheet, it must balance consumer interests with its business actors with 5K principles, adequacy, reliability, sustainability, scheduling and justice.

With this public hearing, we prioritize transparency and accountability in determining electricity rates in Batam. At PLN Batam, it is hoped that it can provide true information to customers, including other stakeholders. So that stakeholders will help provide responses and back feeds in terms of submitting electricity rates to the Minister of Energy and Mineral Resources," Jisman hoped.

Meanwhile, the President Director of PT PLN Batam, Muhammad Irwansyah Putra, revealed that currently PT PLN Batam still uses Governor Regulation (Pergub) Number 21 of 2017 to provide continuous electricity services in order to meet electricity needs for the community in sufficient, quality and reliable quantities.

"With the issuance of Law no. 11 of 2020 concerning Job Creation, it is recommended that the electricity sector, which was originally under the authority of the regional government, be changed to the authority of the central government through the Ministry of Energy and Mineral Resources, which was then followed by the issuance of the Juklak in the form of the Ministerial Regulation (Permen) of Energy and Mineral Resources No. 10 of 2022 concerning Procedures for Approval for the Approval of Electricity Selling Prices and Electric Power Network Rents and Procedures for Application for the Determination of Electricity Tariffs," said Irwansyah.

According to Irwansyah, the issuance of the new regulation made several substances and provisions in the Ministerial Regulation that needed to be adjusted.

In this latest regulation, in particular Article 13 it is stated that the holder of an Electric Power Supply Business Permit (IUPTLU) has an Business Area that applies Electricity Tariffs for Consumers within its business area.

As for article 20, it is also stated that the Electricity Tariff as referred to in Article 16 can be adjusted to the Electricity Tariff (tariff adjustment).

Electric Power Tariff Adjustments can be made in the event of changes from one or more factors that can affect the electricity power BPP, including the exchange rate of US dollars on rupiah currency (exchange rate), primary energy prices, inflation, and/or other factors set by the Minister.

"Administering and tariff adjustment will continue to be able to increase certainty and sustainability for customers in maintaining supply continuity, capacity development and improving services that ultimately encourage growth and development," he concluded.