KUALA LUMPUR ā The Energy Transition and Water Transformation Ministry (PETRA) was not consulted about any recent announcement concerning tariff increases in Peninsular Malaysia, said Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who also holds the portfolio of Minister of Energy Transition and Water Transformation, clarified that PETRA had neither been approached nor informed by Tenaga Nasional Bhd (TNB) regarding the proposed electricity tariff hikes.
āAs emphasised by the Prime Minister (Datuk Seri Anwar Ibrahim), any increase that could burden the public will not be permitted,ā he said in a statement today, as quoted by Bernama
Fadillah noted that PETRA, in collaboration with the Energy Commission (ST), is still finalising the new electricity tariff schedule, expected to take effect in July 2025.
He explained that a review of the base electricity tariff is necessary to reassess fuel prices, particularly for coal and gas. However, he assured that the governmentās determination of electricity tariffs would prioritise public welfare and well-being.
āIn this matter, any announcement regarding electricity tariffs in the peninsula will be issued by the government,ā he said.
For domestic users and micro, small, and medium enterprises (MSMEs), Fadillah reaffirmed the governmentās commitment to ensuring competitive and affordable tariffs. Targeted subsidies would continue, protecting 85 per cent of domestic users whose monthly electricity consumption does not exceed 1,500 kilowatt-hours (kWh).
He added that commercial and industrial users with high electricity consumption and substantial profits would need to bear electricity costs at actual market rates. Nonetheless, the government encourages such users to adopt energy-saving measures, such as installing solar panels, implementing energy efficiency initiatives, and conducting energy audits in partnership with Energy Service Companies (ESCOs).
Discussing fuel prices, Fadillah highlighted that during the third regulatory period (RP3) from 2022 to 2024, the coal price was projected at US$79 (RM353.30) per metric tonne, while gas prices were based on a two-tier formula. For gas volumes up to 800 million standard cubic feet per day (mmscfd), the floor price was RM24/MMBtu, and the ceiling price was RM30/MMBtu. Beyond 800 mmscfd, the average gas price was RM33/MMBtu.
Post-COVID-19 and amid the global energy crisis, fuel prices saw a significant increase. For the fourth regulatory period (RP4) from 2025 to 2027, coal prices are projected to rise to US$97 (RM433.80) per metric tonne, while gas prices for usage up to 800 mmscfd are set with a floor price of RM24/MMBtu and a ceiling price of RM35/MMBtu. The average price for gas usage beyond 800 mmscfd is projected at RM46/MMBtu.
TNB, in its Bursa Malaysia filing yesterday, stated that the proposed new tariff schedule under RP4, with a base tariff of 45.62 sen per kilowatt-hour (kWh) for Peninsular Malaysia, remains at the proposal stage.
Earlier today, Prime Minister Datuk Seri Anwar Ibrahim assured Malaysians that any increase in electricity tariffs will not have a significant impact on the majority of the population.
Speaking in Langkawi today, he said that the government will ensure that tariff hikes do not burden the general public.
āWe will not allow electricity price increases that negatively affect the people,ā the prime minister said.
āSuch hikes, like those in the past, primarily impacted the affluent and industries with substantial profits. The vast majority of the public will not be affected, even though I understand that costs are rising.ā
He emphasised that while cost increases are inevitable, they must not harm the financial stability of the majority of Malaysians.
āThis is a policy decision. I understand the necessity for hikes, but they must not place an additional strain on the general public.ā
Anwar further said that TNB and Fadillah will provide more detailed explanations regarding the tariff adjustments. – December 27, 2024