Business Electricity Charges

Oct 28th, 2006, in Business & Economy, by

The state electricity company has intentions to reduce prices for industry.

For some years industrial and commercial users of electricty supplied by PT PLN (Persero) faced special, “multi-use” charges, incurred whenever a user requested the addition of a new electricity line or supply, or an increase in voltage. These charges led to companies having to pay US 15 cents per kilowatt hour of energy while the international average is at around 7 cents per kWh, according to United States Energy Information Administration figures.

The special tariffs on multi-use had originally been put in place, it is said in Tempo, as a way of dealing with shortages in supply and lack of generation facilities, but on the 25th the Industries Minister, Fahmi Idris, said that PLN had agreed to a request from the director general of the Metal Industries department, Ansari Bukhari, to review the prices within one month after the end of Ramadan.

Fahmi was optimistic that PLN would abolish the multi-use tariffs in a timely manner because new facilities had already come on line, this meaning that the original reason for the introduction of the tariffs had become redundant. Fahmi went on to say that the multi-use charges added to the problems faced by industry and represented a brake on growth. Once abolished, he said, new projects which had been put on hold or cancelled would be realised, due to the fall in the price of electricity for business.

PLN spokesman Muljo Adji said that the matter was currently being debated. He said that PLN had no wish to burden industry with onerous charges but claimed that high charges were in place simply because demand was so strong.

3 Comments on “Business Electricity Charges”

  1. Junaidi says:

    It is a such interesting topic when talking about electricity charges. Althoungh I’ve been working for PLN since 1993, but frankly I did not know that much of how is the structure of the tariff charged to consumers. In simple idea, tariff that is charged to consumers is so called HPP(Harga Pokok Produksi) or in economic term it is called “Production Cost”. If it is true, then losses is responsibles to the tariff. Take example of losses (technic and non-technic) in PLN Distribution of Jakarta which is as high as 10.06 (accumulative to first triwulan). May be, when the problem of losses is taken care seriously, the financial losses of PLN will be reduce significantly.

  2. Doug says:

    I wish prices were going down in the UK. Unfortunately they continue to rise more and more. Mainly due to over-reliance on Russian gas.

  3. Shannon says:

    Can someone tell me how the distribution of electricity charges normally occurs in Jakarta between a corporate body, the owner of an appartment and the tenant.

    The tennat is normally responible for the utilities of the apartmentbase on the consumption they have used. PLN have a rate of RP621/kwh on a coding of ‘R3’. The appartment complex receives charges under the coding of B3.

    It has been my understanding that the Rent paid to the owner includes all the facilties within the complex, such as the gymnasim, swiming pool, restruant etc etc. The power necessary to run all the facilties of the comlex is the repsonsiblity of the Corporate body and that of the Owner, the tenant has nothing to do with it as the rent paid should include the use of these facilities. Well our electricity Bill is unbelievable, our meter reading for the month was 461kwh and we have been charged for 4610kwh, a factor of ten.
    Out bill shows we are charged under B3 and when questioning the building management the response has been” We believe the B3 charge the corporate body gets is very high and it is not fair they they have to pay it so the tenants have been charged to pay it.

    This is rediculous, unscrupuluos and highway robbery. Can anyone advise if their are any government regulations that control how these apartment bodies can charge for electricity or AT LEAST WHAT IS THE NORMAL.

    It should be noted here that the corpate body and the owners of the aprtments are one of the same persons.


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