Power has its Price

Electrical Charges in Indonesia Increase an Average 4.3% on April 1, 2013

Electricity charges in Indonesia will rise an average 4.3%, effective April 1, 2013. The prospect of higher energy costs has many hotelier in Bali strategizing on how to reduce energy consumption and, in some cases, reduce staffing in order to be able to pay their electrical bills.

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The vice-chairman of the Indonesian Hotel and Restaurant Association (PHRI-RI), Johnnie Sugiarto, told detikfinance that the increase electrical tariff was putting hotel operators under pressure. He described how the higher power charges come at a time when many hotels are experiencing low occupancies and increases in the minimum wage levels set by regional governments.

Sugiarto warns that in order to address these business pressures the management of hotels will seek to reduce the number of employees while, at the same time, reducing the amount of electricity used by each property.

The April 1, 2013 increase of 4.3% in electrical charges follows a similar increase in power charges introduced on January 1, 2013.

The increase effective on April 1, 2013 varies depending on the consumer’s classification according to categories assigned by the State Power Board (PLN):

  • Large residential consumers (R-3) using more than 6,600 K Va will see rates increase 9.62% from Rp. 1,195/Khw to Rp. 1,310/Khw.
  • Mid-sized businesses (B-2) using between 200 k Va and 6,600 K Va – a category occupied by many 3-starred hotels, restaurants and businesses place will have power rates increase 8.23% from Rp. 1,216/Kwh to Rp. 1,315Kwh.
  •  Large Business (B-3) with power usage above 200 kVa – a category used by 4-star hotels and above, shopping centers, entertainment centers and television stations will see power tariffs increase 10.26% from Rp. 975/Kwh to Rp. 1,076/Kwh,
  • Government offices using between 6,600 Va to 200 k Va will increase 3.69% from Rp. 1,220/Kwh to Rp. 1,265 Kwh.

Source@Bali Discovery Tours

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