Luxury House Electricity Bill Will Rise

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  • zillow

VIVA – The government has officially adjusted the electricity tariff again for luxury houses with a power of 3,500 VA and above starting July 1, 2022. It is influenced by uncontrollable factors, namely exchange rates, inflation, crude oil prices (ICP), and coal prices.

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"ICP and inflation affect the tariff adjustment, which will be implemented starting in the third quarter of 2022," said the Director General of Electricity at the Ministry of Energy and Mineral Resources, Rida Mulyana, during a discussion in Jakarta, Friday, June 17, 2022.

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The government plans to adjust special electricity tariffs for luxury households with 3,500 VA and above (R2 and R3) and the government (P1, P2, and P3) starting on July 1, 2022.

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Ilustrasi Petugas PLN saat memeriksa meteran listrik di suatu rumah susun di Jakarta.

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  • ANTARA FOTO/M Agung Rajasa

Rida also explained that the government always reviews the development of the exchange rate, inflation, ICP, and coal prices every three months which is the basis for the electricity tariff adjustment policy. In the third quarter of 2022, the government sees a tendency for oil prices to rise significantly due to the global crisis and the Russia-Ukraine geopolitical conflict.

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"Our initial ICP assumption was US$63/barrel. But recently, for the purposes of calculating tariff adjustments in the third quarter, it has reached 104 US dollars per barrel," said Rida.

Then, she continued, crude oil prices rose 65 percent from the government's initial assumption of only US$63/barrel.

Referring to the outlook for the cost of supplying electricity (BPP) of PLN this year, the purchase of fuel oil reached Rp. 22.67 trillion or 17.79 percent of the total purchase of fuel which was Rp127.45 trillion.

"ICP is very dominant in influencing BPP and encourages us to adjust tariffs," explained Rida.

Ilustrasi instalasi listrik

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Inflation is also the cause of the policy to increase electricity rates. The government chose to adjust the electricity tariff for non-subsidized household customers and the government. So, it would not have a significant impact on inflation.

According to her, the initial assumption of inflation was at 0.25 percent, but until April 2022 inflation developments had penetrated 0.95 percent.

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