Senin, Agustus 21, 2023

Govt. Incorporates Coal Reference Prices as Electricity Tariff Adjustment Factor

The Minister of Energy and Mineral Resources ("Minister") has issued Regulation No. 8 of 2023 ("Fifth Amendment"), which has been in force since 26 July 2023 and which sets out the applicable Coal Reference Prices (Harga Batubara Acuan – "HBA"), as well as updating certain mechanisms for the implementation of electricity tariff adjustments ("Tariff Adjustment"), as originally addressed under Regulation of the Minister No. 28 of 2016 ("Regulation 28/2016").
While retaining the electricity tariff classifications that are subject to the quarterly Tariff Adjustment and certain factors that may affect the main electrical power price (e.g. exchange rate against the US dollar, the Indonesian crude price and/or the inflation rate), as originally featured under Regulation 28/2016, the Fifth Amendment now incorporates HBA as a factor. Previously, Regulation 28/2016 featured Coal Benchmark Prices (Harga Patokan Batubara/HPB) instead of HBA.
In terms of the above-mentioned HBA, the Fifth Amendment clarifies that these prices derive from accumulated implementation data based on determined HBA that were in turn calculated in accordance with certain terms prior to the implementation of the Tariff Adjustment. Said terms include: 1) 50% of the HBA during the third month; 2) 30% of HBA during the fourth month; and 3) 20% of the HBA during the fifth month.
Moreover, the Fifth Amendment has also adjusted the applicable formulas (e.g. adjustment formula, determination of coefficient changes and applications for adjustments) that apply in relation to Tariff Adjustment calculations, as comprehensively detailed under the Appendix to the Fifth Amendment.
It should also be noted that the Tariff Adjustment process for the July - September 2023 period will still be implemented in accordance with relevant laws and regulations that were in force prior to the enforcement of the Fifth Amendment.

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*Syarat dan ketentuan berlaku

The Minister of Energy and Mineral Resources ("Minister") has issued Regulation No. 8 of 2023 ("Fifth Amendment"), which has been in force since 26 July 2023 and which sets out the applicable Coal Reference Prices (Harga Batubara Acuan – "HBA"), as well as updating certain mechanisms for the implementation of electricity tariff adjustments ("Tariff Adjustment"), as originally addressed under Regulation of the Minister No. 28 of 2016 ("Regulation 28/2016").
While retaining the electricity tariff classifications that are subject to the quarterly Tariff Adjustment and certain factors that may affect the main electrical power price (e.g. exchange rate against the US dollar, the Indonesian crude price and/or the inflation rate), as originally featured under Regulation 28/2016, the Fifth Amendment now incorporates HBA as a factor. Previously, Regulation 28/2016 featured Coal Benchmark Prices (Harga Patokan Batubara/HPB) instead of HBA.
In terms of the above-mentioned HBA, the Fifth Amendment clarifies that these prices derive from accumulated implementation data based on determined HBA that were in turn calculated in accordance with certain terms prior to the implementation of the Tariff Adjustment. Said terms include: 1) 50% of the HBA during the third month; 2) 30% of HBA during the fourth month; and 3) 20% of the HBA during the fifth month.
Moreover, the Fifth Amendment has also adjusted the applicable formulas (e.g. adjustment formula, determination of coefficient changes and applications for adjustments) that apply in relation to Tariff Adjustment calculations, as comprehensively detailed under the Appendix to the Fifth Amendment.
It should also be noted that the Tariff Adjustment process for the July - September 2023 period will still be implemented in accordance with relevant laws and regulations that were in force prior to the enforcement of the Fifth Amendment.

......