Sep 24, 2010

No electricity tariff hike in 2011

Ministry of Energy and Mineral Resources (ESDM) and House Commission VII agreed not to increase the electricity tariff in 2011 on condition the subsidy amount in 2011 is matched with 2011 Draft State Budget and Financial Note.
The decision was taken at a meeting between Minister of Energy and Mineral Resources Darwin Zahedy Saleh and House Commission VII last night.
“There will be no hike in electricity tariff in 2011, and no additional subsidy for electricity in the next year,” Chairman of House Commission VII Teuku Riefky said while reporting the meeting result last night as reported Bisnis.com today. 
Yet, as he added, the agreement was reached on several conditions, including the financial statement of the last five years. Also, there shall be an explanation on the use of 8% margin given to PT Perusahaan Listrik Negara (Persero), the state owned electricity company.
Minister Darwin Zahedy Saleh welcomed the decision not to increase the electricity tariff by 2011.
“Government disagrees to increase the electricity tariff in 2011 State Budget Draft also to add to electricity subsidy which is IDR41.02 trillion as stated in 2011 Draft State Budget and Financial Note,” he confirmed.
Yet, as he informed, the government has proposed carry over of the 2009 electricity subsidy debt amounting IDR4.6 trillion and not to be given in 2011 in order to seal the deal.
Based on 2011 Draft State Budget and Financial Note, the government allocates electricity subsidy IDR41.02 trillion for next financial year, on the assumption of current electricity subsidy (2011) amounting IDR36.4 trillion, electricity subsidy debt in the fiscal year of 2009 as much as IDR4.6 trillion and the electricity hike as per 1 January 2011 as much as 15%.
With potential efficiency at PLN, government tends to propose carry-over of 2009 subsidy debt IDR4.6 trillion so that they will not increase the basic tariff and add to current electricity subsidy, Darwin said.

Disclosure: No position at the stock mentioned above.  

Print This Article

No comments: