Tariff Policy Policy Supporting .1 A Policy in Supply the Electrical power

14 Government has issued already a Decree of Ministry in Energy and Natural Resources No. 1 of 2015 regarding a Cooperation of Supply Electricity and Jointly uses of Electricity Nets.

1.3.6. Tariff Policy

The government policy on the electricity tariff is applicable the tariff got gradually and in planning is led to achieve its economical rate so that tariff of the electricity can cover all basic cost expended to supply. This policy is expected capturing positive responses from investor and encourage them to invest on the electricity. In deciding its policy of tariff in electricity has been done refers to its economical values. However, a tariff for consumer in public should be done under consideration: 1. Having balanced national, regional, consumer, and the operator of business in supply the electricity; 2. Hold public interest and capability; 3. Rules of industry and commercial healthy; 4. Basic cost in supply the electricity; 5. Efficiency of business operation; 6. Scale of operation and system inter-connected; and 7. Available sources of funds for investment. The policy of tariff on regional electricity shall be persistently reviewed and possibility to apply them for future. It mainly correlates with difference condition of electricity development in one region to other. Having applicable tariff in regional can push local autonomy to provide fund for development of facilities to supply the electricity. The primary points to consider apply the regional tariff of electricity are as the followings : 15 1. Local community capability as customer to the electricity. 2. Geographic condition of electricity system; 3. Willingness of PLN and owner of share in PLN to divide and separate the business region become an agent or a subsidiary; 4. Willingness or special support by local administration in providing the funds on electricity subsidy; 5. Fairness rate of electricity tariff bases to social economy condition of all public. For future, policy of electricity power tariff on consumer group with the tariff has achieved economy valuable may be led in “Auto Tariff Adjustment” applicable. 16

CHAPTER II A REVIEW CONDITION OF NATIONAL ELECTRICAL POWER

2.1 The Condition Demand on Electrical Power

The Indonesia economic growth currently required a reliable supply in energy including on electricity. The electricity need shall go increasing refers to the economy growth and population. More increasing economy in a region shall result in increased consumption up in electrical power as well as. This condition should be anticipated as early as possible for the supply in electrical power can be provided in sufficient as required in a better quality and good price. Fig. 2.1. Growth by consumption in national electricity TWh Source: DG of Electricity National rate consumption in electricity in Fig. 2.1 got increased about 8.99 in 2012, 7.33 in 2013, 5.74 in 2014, 6.11 in 2015 and about 5.46 in 2016. Per capita consumption 2010-2019 in figure 2.2. 164 178 194 209 221 235 247 - 50 100 150 200 250 300 2010 2011 2012 2013 2014 2015 2016 Konsumsi TWh