By Xinhua
Jakarta : The Indonesian government plans a new billing system that will encourage customers to use electricity wisely, intended to ease subsidy burdens on state power company PLN, local press said Monday.
The new system uses last year’s average household electricity consumption as a benchmark and users who keep 2008 consumption to 80 percent of that benchmark would get a 20 percent discount.
On the other hand, households whose consumption exceeds the benchmark will be subject to penalties in the form of higher rates, reported local newspaper The Jakarta Post.
“There will be a reward and punishment mechanism,” director general of electricity and energy utilization Purwono was quoted as saying.
He said the policy would be applied in March.
PLN subsidizes household electricity use, which accounts for almost 90 percent of total national electricity use.
Purwono said the policy would help the government reduce power subsidies by 10 trillion rupiah (1.08 billion U.S. dollars) this year.