Kota Marudu Member of Parliament

Consumers to pay higher electricity tariff from Jan 1

PUTRAJAYA: Households that use more than 300kwh per month will have to pay higher electricity tariff due to the reduction in rebates.

But those who consume less than 300kwh will not be affected.

Energy, Green Technology and Water Minister Datuk Seri Maximus Ongkili said there would be no change in the base electricity tariff from Jan 1 to June 30 next year.

However, the rebate has been reduced from 2.25 sen kwh to 1.52 sen kwh effective Jan 1 for those using more than 300kwh, which translates to RM77 per month.


The rebate reduction means that if you previously paid RM218.30 for 600kwh of usage per month, you now have to pay RM222.68.

“Power tariff for consumers in peninsular Malaysia will remain unchanged at 38.53 sen kwh up to the first six months of next year despite the rise in coal prices.

“Electricity tariff rebate will still be given but at a reduced rate.

“The Cabinet made the decision after it made some savings from lower fuel costs and the generation of Imbalance Cost Pass-Through (ICPT) of RM762.03mil between July and December this year,” Ongkili told a press conference yesterday.

He said the savings were gained from the reduction in liquefied natural gas in the world market, as well as the increased efficiency of gas and coal power plants.

“The price of coal has gone up due to the weakening ringgit against foreign currencies, while the subsidy rationalisation for the power sector due to the increase of piped gas price in peninsular Malaysia begins next year.

“Despite this, the Government is still able to retain the current power tariff rate,” Ongkili said.

He added that the Cabinet had agreed that Sabah and Labuan, which does not use the ICPT mechanism, would retain its current 1.20 sen kwh average downward revision due to savings from the medium fuel oil and diesel subsidies.

He assured that the rebate would not have any implication on the financial position or the operations of Tenaga Nasional Berhad and Sabah Electricity Sdn Bhd.


Source - The Star