Is Low Electric Power More Cost-Effective?


The government will officially adjust electricity tariffs for the rich and government groups, namely the non-subsidized 3,500 Volt Ampere (VA) and above (R2 and R3) and the government group (P1, P2, and P3). This policy will take effect from 1 July 2022. For this reason, the State Electricity Company (PLN) invites people who want to apply for a reduction in electricity if they feel burdened. Then, is this method cost-effective? Apparently not.

Economists at the Institute for Development of Economics and Finance (Indef) Abra Talattov considered it legitimate if people wanted to reduce electrical power along with the increase in tariffs. However, according to him, this is not correct.

“They want to lose power, it’s their right, but is it the right decision? Is it cost-effective? They will also suffer losses, is it according to their power needs?,” he said at the Squawk Box event, quoted Tuesday (14/06/2022).

In addition, Abra also assessed that there is still room for the government to expand electricity tariff adjustments. Especially for the industrial and large business user segments while still preparing selective compensation to reduce the negative impact.

President Director of PLN Darmawan Prasodjo previously said that reducing electricity power is the right of the customers.

Meanwhile, if the electricity tariff adjusted by the Government and PLN is quite burdensome for the affected customers, then the customer is welcome to reduce the electric power in order to make cost-effective.

However, he suggested that the decrease in electric power should also adjust to daily electricity consumption. So that in the future there will be no problems with electricity supply in line with the policy of reducing power.

Previously, the Ministry of Energy and Mineral Resources (ESDM) together with PT PLN had just officially raised electricity rates for non-subsidized household customers of 3,500 Volt Ampere (VA) and above (R2 and R3) and government groups (P1, P2, and P3). starting July 1, 2022.

The tariff adjustment was only applied to well-to-do households, which amounted to 2.09 million customers or 2.5% of the total PLN customers which reached 83.1 million. Also to the government group, which amounted to 373 thousand customers or 0.5%.

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 kilowatt hour (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.