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2012 Electricity hike still awaits PLNs study

JAKARTA: Government still waiting for PLNs result of study on customer and industrial ability to pay (ATP) before officially proposing 10%-15% hike in basic electricity tariff in 2012 to Parliament.Electricity Director General at Ministry of Energy Jarman

JAKARTA: Government still waiting for PLNs result of study on customer and industrial ability to pay (ATP) before officially proposing 10%-15% hike in basic electricity tariff in 2012 to Parliament.Electricity Director General at Ministry of Energy Jarman said the Electricity Directorate has officially requested such study to PT Perusahaan Listrik Negara (Persero) and still wait for its result.The Energy Ministry has not officially proposed the tariff hike to Parliament. We had already sent the request letter equipped with terms of reference regarding the study on customer purchasing power and industrial capability to PLN, he said when attending the hearing with House of Commission VII, yesterday.According to Jarman, Energy Ministry will also conduct meeting with Head of Fiscal Policy Agency at the Ministry of Finance and PLN to discuss it again.The study on customer and industrial ATP will complete in the next 4-6 months, PLNs Primary Energy Director Nur Pamudji said.Jarman estimates the needs of subsidized electricity in 2012 will reach IDR58.72 trillion or IDR18.72 trillion higher compared to the allocated 2011 State budget at IDR40.70 trillion.Fixed assumptionElectricity subsidy needs of IDR58.72 trillion also use this years electricity price in accordance to Presidential Decree No. 8/2011 at IDR729 per kWh.The electricity subsidy needs next year could reach IDR58.72 trillion after calculating every assumption including the proposed operating margin at 8% or same with this year.The estimation also use assumption of rupiah exchange rate against dollar at IDR9,200, Indonesian crude price (ICP) at US$85 per barrel and growth of electricity sales around 9%.He said that every increase of IDR1,000 per US$ exchange rate will increase the need for electricity subsidy of about IDR600 billion while each increase in ICP for US$ 1 per barrel will increase the needs of about IDR350 billion.Electricity sales next year are estimated to be around 173.77 TWh, network loss around 8.90%, and cost of electricity supply at IDR988 per kWh or around IDR171.67 trillion.Electricity sales revenue in 2012 could reach IDR126.69 trillion or higher from IDR112.17 trillion this year," he said. (t06)

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