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Planned Industrial Electricity Rate Rise May 1

Planned Industrial Electricity Rate Rise May 1

Jakarta , ( Analysis ) . The government plans to raise electricity rates for large industrial consumers between 38.9 to 64.7 percent starting May 1, 2014 .

Minister Jero Wacik during a meeting with House Commission VII here on Tuesday , said the rate increase is planned in several phases, which are divided every two to four months.

"If two months , then the end of the year already economical . But , if four months , the new mid next year its economic reach , " he said .

According to him , the consideration began May 1, 2014 because there April legislative elections .

" We , meaning the government and Parliament , need to maintain favorable conditions in the community , " he said .

He said the reduction in subsidies from the industrial class rate increase is estimated to reach Rp 8 , 85 trillion during the year .

The rate increase applies to planned industrial group ( I3 ) are already listed on a stock exchange or open status ( tbk ) of 371 and 61 other companies are group I4 .

I3 Group is the industrial customers who use the medium -voltage electrical power above 200 kVA .

Meanwhile , I4 an industrial customer that uses high -voltage network with over 30,000 kVA power .

I3 Group is planned to rise 38.9 percent to 8.6 percent would be divided every two to four months.

Meanwhile , the increase amounted to 64.7 percent I4 planned 13.3 percent divided every two to four months .

Jero also said the government proposes the application of electricity tariff adjustment automatically ( automatic tariff adjustment) for the four groups, which are no longer subsidized went into effect May 1, 2014 .

The fourth class of non-subsidized electricity rates that are large households ( R3 ) with 6,600 VA power up , medium-sized business ( B2 ) with the power of 6,600 VA to 200 kVA , big business ( B3 ) with power above 200 kVA , and government offices were ( P1 ) with a power of 6,600 VA to 200 kVA .

The pattern will depend exchange rates , inflation , and oil prices .

" Reduction of subsidies ' tariff adjustment ' is reached Rp1 , 42 trillion in one year , " he said .

Rate increase tbk I3 and I4 classes and four classes of automatic tariff adjustment nonsubsidi Budget discussion agreed in 2014 between the government and the House Budget Committee .

In accordance with Law No. 23 Year 2013 on State Budget 2014, the electricity subsidy allocation amounting to Rp71 , 4 trillion, including deficiency payments in 2013 Rp 3 , 5 trillion .

Beyond that , the electricity subsidy of Rp10 reserved Similarly , 4 trillion . ( Ant )