We will issue the ministerial regulation before May 1, 2014."
Jakarta (ANTARA News) - The government will hike electricity tariffs for large-scale industrial users by 8.6-13.3 percent, effective on a bi-monthly basis, starting May 1, 2014, stated Director General of Electricity at the Energy and Mineral Resources Ministry Jarman.

The ministry is drafting a regulation as a legal basis to impose the power tariff hike, he noted here on Wednesday.

"We will issue the ministerial regulation before May 1, 2014," he noted.

The regulation will also deal with automatic tariff adjustments for the four non-subsidized groups, which will be introduced on a monthly basis, starting May 1, 2014, he added.

Jarman reported that the electricity tariffs for public-listed, large-scale industrial consumers using more than 200 kilovolt amperes (kVa), known as the Group I3, will be raised by 8.6 percent every two months.

Meanwhile, the electricity tariff hike for industrial consumers using more than 30 thousand kVA, known as the Group I4, will be set at 13.3 percent every two months, he explained.

Every four months, the government proposes to raise the electricity tariffs by 8.6 percent for the Group I3 and by 13.3 percent for the Group I4, he stated.

The electricity tariffs will be raised on May 1, July 1, September 1, and November 1, 2014, respectively, he noted.

Overall, the electricity tariffs for the Group I3 will increase by 38.9 percent and for the Group I4 by 64.7 percent this year.

Earlier, at a meeting with Energy and Mineral Resources Minister Jero Wacik on January 21, 2014, the House Commission VII agreed to a 38.9 percent hike for the Group I3 and a 64.7 percent hike for the Group I4.

At the meeting, the House Commission requested the government to compute the electricity tariff hikes for the Groups I3 and I4 in proportion to the reduced subsidy agreed upon by the House Budget Committee.

At the meeting, the House of Representatives and the government jointly agreed to reduce the subsidy by Rp10.96 trillion by raising the electricity tariffs for the Group I3 by Rp1.39 trillion and for the Group I4 by Rp7.57 trillion and applying an adjustment tariff of Rp2 trillion.

(Reporting by Kelik Dewanto/Uu.INE/KR-BSR/H-YH)

Editor: Priyambodo RH
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