ABSTRACT

SATRIANI SAID AKHMAD. A Study on the Calculation of Regional Tariff of Electricity in South Sulawesi using the Long Run Marginal Cost (LRMC) Method (supervised by Muhammad Arief and Indra Jaya).

The goal of this research is to determine the regional tariff of electricity in South Sulawesi using the Long Run Marginal Cost (LRMC) method.  The application of this method in the electricity tariff calculation defines the LRMC as the production cost of every additional one kW of electrical power or one kWh energy demand. The cost components of the marginal cost calculation are the marginal energy cost, the marginal generation capacity cost and the marginal network capacity cost. These cost components are allocated into all consumer distribution points at every level of voltage (High Voltage, Medium Voltage and Low Voltage) by putting the power losses in the transmission and distribution network into consideration. Then, the tariff of electricity for each load category (in Rp/kWh) is calculated by transforming the cost components and considering several factors such as the coincidence factor, the load factor and the peak energy share.

As the result, this study has shown that the average tariff in South Sulawesi is supposed to be Rp. 1.074,20 per kWh, almost twice as the bill paid by the consumers in May 2005, which is only Rp. 580,96 per kWh in average.