Electricity Subsidy Limit Permits

Government reduces tariffs limit subsidies for customers with 6600 Volt Ampere power upward from the previous average of 50 percent to 30 percent of national consumption.

Director General of Electricity and Energy Ministry of Energy J Purwono said, declining subsidy limit is a demand for the House of Representatives (DPR). It is expected that these policies would provide additional revenue for PT National Electricity Company (PLN) of Rp 1 trillion.

"With the addition of Rp 1 trillion, the electricity subsidy in a working meeting of Commission VII of the House of Representatives last week fell from Rp 56.1 trillion to Rp 55.1 trillion," he said in Jakarta on Tuesday, May 3, 2010.

With the implementation of the subsidy limit, the VA to top 6600 customers will be charged at USD 630 per kwh subsidy on electricity consumption up to 30 percent national average. Meanwhile, 6600 VA to top customers who use over 30 percent nationally, will be charged nonsubsidi, ie Rp 1,380 per kwh.

Previously the company was applying for the subsidy limit of 6600 subscribers to the VA for 50 percent of national consumption started in January 2010.

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