GOVT PLANS TO RAISE ELECTRICITY TARIFFS FOR ABLE SUBSCRIBERS IN 2010

Jakarta, June 12 (ANTARA) - The government plans to raise electricity tariffs for able subscribers by 15 percent in 2010 after all power plants with a combined capacity of 10,000 megawatts have been operational, an Energy and Mineral Resources Ministry offficial said.

Director General of Electricity and Energy Usage J Purwono said on Thursday the government would restructure electricity tariffs in 2010 by introducing subsidized and non-subsidized tariffs.

"The subsidized tariffs will be applied to small-scale subscribers and the non-subsidized tariffs to able subscribers," he said.

But the government had yet to define able subscribers who would be subject to non-subsidized tariffs, he said.

Once the power plants with a combined capacity of 10,000 were operational, the production cost of electrical power (BPP) supplied by state electricity company PT PLN was expected to fall by around Rp250 to Rp700 from Rp950 per kWh, he said.

Therefore, the difference between the BPP and the basic electricity tariff (TDL) which currently stands at Rp630 per kWh would become increasingly smaller, he said.

"So, even if the non-subsidized tariffs are raised the increase will not exceed 15 percent from the current tariffs," he said.

He said the non-subsidized tariffs were set on the basis of BPP in each region, he said.

A region which is rich in energy sources would have low BPP or the other way around, he said.