Luxury House Electricity Bill Will Rise
- zillow
VIVA – The government has officially adjusted the electricity tariff again for luxury houses with a power of 3,500 VA and above starting July 1, 2022. It is influenced by uncontrollable factors, namely exchange rates, inflation, crude oil prices (ICP), and coal prices.
"ICP and inflation affect the tariff adjustment, which will be implemented starting in the third quarter of 2022," said the Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, during a discussion in Jakarta, Friday, June 17, 2022.
The government plans to adjust special electricity tariffs for luxury households with 3,500 VA and above (R2 and R3) and the government (P1, P2, and P3) starting on July 1, 2022.
Rida also explained that the government always reviews the development of the exchange rate, inflation, ICP, and coal prices every three months which is the basis for the electricity tariff adjustment policy. In the third quarter of 2022, the government sees a tendency for oil prices to rise significantly due to the global crisis and the Russia-Ukraine geopolitical conflict.
"Our initial ICP assumption was US$63/barrel. But recently, for the purposes of calculating tariff adjustments in the third quarter, it has reached 104 US dollars per barrel," said Rida.
Then, she continued, crude oil prices rose 65 percent from the government's initial assumption of only US$63/barrel.
Referring to the outlook for the cost of supplying electricity (BPP) of PLN this year, the purchase of fuel oil reached Rp. 22.67 trillion or 17.79 percent of the total purchase of fuel which was Rp127.45 trillion.
"ICP is very dominant in influencing BPP and encourages us to adjust tariffs," explained Rida.
Inflation is also the cause of the policy to increase electricity rates. The government chose to adjust the electricity tariff for non-subsidized household customers and the government. So, it would not have a significant impact on inflation.
According to her, the initial assumption of inflation was at 0.25 percent, but until April 2022 inflation developments had penetrated 0.95 percent.
"We are very selective only for R2 and R3 customers and also consider the recent trend of inflation," said Rida.
Meanwhile, Director of Commerce and Customer Management of PT PLN (Persero) Bob Saril said that his party continues to increase efficiency with the main focus on using fuel or energy mixtures to reduce expensive fuels, one of which is diesel-fueled power plants.
Not only that, the State Electricity Company (PLN) also encourages the use of technology. So, the energy produced can be greater than the fuel used in the generation sector.