PLN lower rates for 900-VA customers

PLN - JAKARTA. State-owned electricity company PLN has announced that it will lower its rates for unsubsidized customers by 3.8 percent in March, following a decline in global oil prices and the strengthening of the rupiah against the United States dollar.

PLN announced on Friday that rates would be lowered for 900-volt ampere (VA) households. “The Rp 52 (0.37 US cents) reduction per kilowatt hour (kWh) for 900-VA customers will start March 1,” said PLN spokesperson I Made Suprateka in a press statement.

PLN has 21 million customers on 900-VA electricity capacity paying Rp 1,352 per kWh.

The Indonesian Crude Price (ICP) has decreased in the last three months from $62.98 per barrel to $56.55 per barrel. Meanwhile, the rupiah stood at about Rp 14,000 per US dollar after weakening to about15,000 per dollar in October 2018.

Suprateka claimed that PLN had improved efficiency through decreasing the electricity loss rate, improving the capacity of power plants and lowering spending on fuel.

Previously, PLN announced that it would introduced policies to boost electricity usage, which had increased gradually in recent years.

PLN director for strategic procurement Supangkat Iwan Santoso said one company policy was to lower costs for customers who wanted to increase their household electricity capacity. “We have to facilitate customers who want to increase  their electricity capacity,” he added.

In the 2018-2027 electricity procurement business plan (RUPTL), the government targets electricity consumption growth of 8 percent annually.  Electricity consumption growth stood at 7.8 percent in 2017 and 6.9 percent in 2018 amid the government’s effort to boost electricity production through its 35,000 megawatt electricity program.