The Ministry of Energy and Mineral Resources should be transparent in setting the electricity tariff.
The Ministry of Energy and Mineral Resources (ESDM) is still discussing the electricity tariff for the non-subsidized 900 volt ampere (VA) households, after the announcement of simplification of the electricity customer group. So far, the government has promised not to raise the 900 VA customer tariff as following the tariff for the 1,300 VA-4,400 VA groups (see table).
As a reminder, the Ministry of Energy and Mineral Resources has a plan to eliminate the electricity customer groups of 900 VA non-subsidized households, 1,300 VA, 2,220 VA, 3,500 VA. Instead the groups will be converted into one customer group who can use a stun electric power for 4,400 VA.
The problem now is that the tariff of 900 VA non-subsidized Rp. 115 cheaper than
the 1,300 VA, 2,200 VA to 4,400 VA. Electricity tariff for 900 VA non-subsidized households is Rp. 1,352 per kWh, while the tariff of electricity customer class of 1,300 VA to 4,400 VA is Rp. 1,467 kWh.
So, if the groups of electricity customers under 4.40 VA are removed, people can enjoy electricity with equal power. But the rates are different. “The technical matter is still discussed, which inevitably does not change the price (electricity tariff),” said Dadan Kusdiana, The Head of Public Information Services Communication Bureau, Ministry of Energy and Mineral Resources, to KONTAN on Sunday (11/11).
Dadan said the simplification does not apply to customers of subsidized households. Group 450 VA with customers as many as 23 million households and class 900 VA with customers 6.5 million households are still subsidized by the government. This is in line with the State Budget (RAPBN) of 2018. “The simplification applies only to 900 VA non-subsidized customers, 1,300 VA, 2,200 VA and 3,300 VA,” he explained.
While the group of 4,400 VA to 12,600 VA will be raised and added the power into 13,000 VA. And the power of 13,000 VA and above will be unlimited.
Dadan explains, the increase and addition of power will not affect to the electricity cost for the communities. As he said, the customers will not be charged anything and the rate of per kWh does not change.
Energy expert of Institute for Essential Services Reform (IESR) Fabby Tumiwa said the tariff for non-subsidized 900 VA group was different because it didn’t include the adjustment rate component. While the tariff of 1,300 VA and above use electricity tariff adjustment. The adjustment factors include inflation, exchange rate changes and the price of oil (BBM).
Since the beginning of 2017, Fabby said the government the adjustment rate is not done. Yet there have been many changes from the factors underlying the adjustment. In addition, for the next year the government will not set new electricity tariffs. In fact, electricity tariffs need to be set every year.
Therefore, Fabby asks the government to be transparent in setting the tariffs for electricity by 2018. “All these times I see ESDM as a regulator is not transparent in setting the electricity tariff and its determining factors, therefore we are in the current situation. There are two tariffs applied for non-subsidized household groups, “he said to KONTAN, Sunday (12/11)
He suggested that the electricity tariff of 2018, including the simplification of household electricity tariffs, still calculates the cost of production of electricity. Referring to the Ministerial Decree No. 1404K / 20 / MEM / 2017, the cost of national electricity production as the basis for determining the electricity tariff in 2017 of Rp. 983 per kWH. This amount was lower Rp 15 kWh from the position in 2015. ” The electricity tariff for 2017should be decreased Rp. 15 per kWh, but in reality, it happens even higher, “he said