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The electricity price hike has two different indication angles, both for consumers and producers. For consumers, this hike is proof that electricity is expensive to produce due to the high price of oil required for generation, meanwhile for producers, it also serves as a benchmark for investors
We must all understand that energy is expensive, where fuel prices for generation is gradually increasing, explains the Minister of Energy and Mineral Resources on Wednesday (30/6). The Minister hopes that the public will be more efficient in using electricity after learning this.
One illustration is shown in Labuan Powerplant Unit 1 and 2 which was recently opened by the President. With a total capacity of 300 MW, Labuan Powerplant consumes a total of 180.000 Kg of coal, equivalent to 69.000 liters of oil per hour. This calculation leads to a total hourly cost of Rp. 48,692,340 for coal and Rp. 402,649,500 for oil.
The basic production cost of electricity is currently minimum electricity price, this is where subsidy is used to cover the deficit. The allocation for electricity subsidy according to Law No. 2 / 2010 is Rp.55,1 trillion.
Electricity price hike of 10% which began on July 1st is to cover a subsidy deficit of Rp.4,8 trillion. Without the 10% rate hike, the government will be forced to add another Rp. 800 billion of monthly subsidies.
