Government extends reductions on electricity bills until end of year

State-owned power distributor PLN has just announced that it is extending an electricity relief scheme to the end of the year.

According to the Jakarta Post, this is to ease the burden on consumers and businesses, many of whom are suffering financially under emergency public activity restrictions imposed to contain the coronavirus pandemic.

Energy and Mineral Resources Ministry Electrification Director General Rida Mulyana said on Monday that extending the relief program by another three months would cost Rp 4.97 trillion (US$341.56 million).

In the first half of the year, the government spent Rp 6.75 trillion on the program for the benefit of 32.90 million customers.

Total budget spending for the electricity support program this year is estimated at Rp 11.72 trillion. Rp 9.46 trillion of the total is to be spent to offer discounts on monthly power bills, while Rp 2.26 trillion is planned for exemptions from the base price, as well as for subscription fees and implementation expenses.

“The government has decided to continue the electricity support through December, with the same provisions applied in the second and third quarter of 2021,” Rida said in a written statement on Monday.

PLN customer management director Bob Saril said the power distributor hoped the extension of the discounts would encourage small-home owners and businesses to remain productive and to increase people’s purchasing power amid the pandemic.

 “We support the government’s decision to provide electricity support for small-home owners and businesses affected by COVID-19,” Bob said on Monday.

The government will continue granting a 50 percent electricity bill discount for consumers and businesses in the 450-volt-ampere (VA) category, the lowest of six power usage categories under prevailing regulations.

The incentive was launched in early 2020.