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Business and Industry Electrical Rates to Increase

Substantial September Hikes to Hit Large Scale Customers During Peak Evening Hours.

(8/8/2005) Within the framewrok of the Government's efforts to curb energy usage, the State Electrical Board (PLN) will be charging large-scale business, industrial and government power users nearly 30% more for electrical consumption between the peek usage hours of 6:00 - 10:00 p.m. every day.

In addition to higher usage rates during peak hours, large-scale power users will also face the daunting prospect of paying penalties of up to 4 times their normal peak period rates whenever power consumption exceeds pre-estbalished peak limits.

PLN hopes the penalty tariffs for industry and business will encourage power conservation thereby reducing the cost of fuel subsidies provided by the Government for the fuel oils needed to drive PLN's power generating plants.

The power cost hike, which will affect only customers using more than 200 kVA, will become effective September 1, 2005.