Electricity Rates Increase Starting July 1, 2022: Here's the Breakdown

State-owned electricity company PT Perusahaan Listrik Negara (Persero), or PLN, will increase electricity tariffs for non-subsidized, affluent household customers in categories R2 and R3 with power capacity of 3,500 Volt Ampere (VA) and above, as well as for government customers (P1, P2, and P3), starting July 1, 2022.

This decision is stipulated in the Minister of Energy and Mineral Resources' Letter No. T-162/TL.04/MEM.l/2022 dated June 2, concerning the Adjustment of Electricity Tariffs (July-September 2022 period), as reported in PLN's press release on Monday (June 13, 2022). The government's decision to increase electricity tariffs for customers with 3,500 VA and above is due to an increase in four key macroeconomic indicators.

PLN President Director Darmawan Prasodjo stated that this tariff adjustment is carried out to create a fair electricity tariff. This aims to compensate those entitled to it, while enabling affluent customers to pay electricity tariffs according to economic principles.

"The application of compensation reverts to the philosophy of government assistance, namely for low-income families. This is not a tariff increase. This is an adjustment, where assistance or compensation should be received by families who are truly entitled to it," said Darmawan.

For customers in category R2 (3,500 VA) and category R3 (6,600 VA and above), electricity tariffs will increase by 17.64% to Rp1,699.53 per kWh starting July 1, 2022.

Furthermore, for government customers in category P1 (6,600-200,000 VA) and category P3, tariffs will increase by 17.64% to Rp1,688.53 per kWh starting next month. PLN customers in category P2 will see a 36.61% increase, resulting in a tariff of Rp1,522.88 per kWh.

The number of customers in categories R2 and R3 are 1.7 million and 316,000, respectively. Meanwhile, the number of customers in categories P1, P2, and P3 totals 373,000.