The document analyzes the relationship between electricity pricing tariffs and commercial sector electricity consumption in Indonesia from 1993-2002 using pooled data from different PLN regions. The author tests the stability of the model results, specifically the impact of income and electricity price on consumption. The results show that electricity price does impact commercial sector consumption, with inelastic short-run price elasticity within a 95% confidence interval, indicating price stability across regions.

1. Pricing on Electricity Tariff: An Analysis using Electricity
Consumption in Commercial Sector
Syamsir Abduh
Electrical Engineering Dept, Trisakti University, Jakarta
E-mail : syamsir@trisakti.ac.id;the_abduh@hotmail.com
Ph/Fax : 021-5663232 Ext. 421/021-5605841
Abstract
The main purpose of this paper is to test the stability of the results of model focusing on the relationship between
pricing on electricity tariff and the Commercial electricity consumption. The results of the income and electricity
price variables are of special interest. Stability in the dimension is tested by applying the model on pooled data
(1993-2002) for each PLN’s regions. The parameter estimate the stability within a 95% confidence interval. The
result for commercial sector show that price does matter in determining electricity consumption, and the short run
price elasticity is somewhat inelastic
Kata Kunci : Electricity tariff pricing, commercial sector.