Electricity Rates for the Rich Will Rise in July 2022

The Ministry of Energy and Mineral Resources (ESDM) has officially set an increase in electricity rates for rich electricity customers or electricity group of 3,500 Volt Ampere (VA) above (R2 and R3) and the Government group (P1, P2, and P3).

The increase in electricity rates will be effective starting July 1. This was confirmed by the Director-General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana in a press conference, Monday (13/6/2022).

Rida said that currently there are at least 38 groups of customers served by PLN. The 38 customers are divided into two groups, namely 25 subsidized groups and 13 non-subsidized groups.

“Especially today, we focus on groups that are not subsidized. So once again, our friends only focus on groups that are not subsidized,” said Rida.

Furthermore, Rida explained that the government is still holding back from adjusting subsidized customer electricity rates due to various factors. Starting from considerations to maintain people’s purchasing power to suppress inflation.

“So we focus on the 13 non-subsidized groups. Among them, with various considerations and a series of coordination meetings between the Ministries and Institutions, we will decide which policy corrections are needed beforehand,” he said.

Meanwhile, the 13 groups, including R2: 3,500 VA – 5,500 VA, R3: 6,6000 VA, 200 KVA. P1: 6,600 VA – 200 KvA and P3 and P2: 200 KVA.

“We and the President Director (PLN Darmawan Prasodjo) are luxurious householders, it is inappropriate for such a luxurious house to receive state assistance. Then we corrected it this morning,” explained Rida.

PLN President Director Darmawan Prasodjo stated that this tariff adjustment was carried out to realize a fair electricity tariff in which compensation was given to the people who were entitled to it, while the people were able to pay the electricity tariff according to the economy.

“The application of compensation is returned to the government’s philosophy of aid, which is intended for poor families. This is not an increase in tariffs. This is an adjustment, in which the assistance or compensation must be received by families who are entitled to receive it,” said Darmawan.

He revealed, that since 2017, there has never been an increase in electricity rates for all customer tariff groups. To ensure that there is no increase in electricity rates, the government has disbursed electricity subsidies of Rp. 243.3 trillion and compensation of Rp. 94.17 trillion from 2017 to 2021.

In the implementation process, he continued, affluent community groups, namely household customers of 3,500 VA and above, also received compensation in a relatively large amount. From 2017 – to 2021, the total compensation for these customer categories reached Rp 4 trillion.

With the tariff adjustment, household customers R2 with a power of 3,500 VA to 5,500 VA (1.7 million subscribers) and R3 with a power of 6,600 VA and above (316 thousand subscribers) the tariff is adjusted from Rp. 1,444,7 per kilowatthour (kWh) to Rp. 1,699. ,53 per kWh.

Meanwhile, government customers P1 with a power of 6,600 VA to 200-kilovolt amperes (kVA) and P3 have the tariff adjusted from Rp. 1,444,7 kWh to Rp. 1,699.53 per kWh. Meanwhile, P2 government customers with power above 200 kVA have the tariff adjusted from Rp. 1,114.74 kWh to Rp. 1,522.88 kWh.