KUALA LUMPUR – Electricity tariff for the remainder of 2022 to be kept at the same rate for all customers, according to the Ministry of Finance (MoF).
In a recent statement by the ministry, it said that all the customers will still be charged based on the same tariff rate as the first half of this year.
The statement stated that the government had made the decision to maintain the electricity tariff despite the fact that the cost of generating power has gone up as a result of the significant increase in global fuel prices this year.
The ministry explained that in the beginning of last year, the price of coal was approximately US$80 per tonne or roughly RM357. However, by the middle of this year, the coal prices shot up to over US$400 a tonne, about five times the price of last year.
Consequently, the statement assured that Malaysia’s government will be bearing the electricity subsidy which is expected to reach RM5.8 billion in order to cushion the impact of rising electricity prices from Malaysians through maintaining the electricity tariff.
The ministry stated that the amount of RM5.8 billion will be paid to Tenaga Nasional Bhd (TNB) to ensure that the company would not be affected by the sudden rise of fuel prices that are used in electricity generation, in line with the country’s Incentive Based Regulation (IBR) mechanism.
Furthermore, the statement said that TNB had also experienced an increase to its working capital requirements as a result of the fuel price increase.
Due to that, the statement also ensures up to RM6 billion in financing for TNB to ensure that the company’s electricity supply operation would not face disruption while at the same time, catalysing sustainability in Malaysia’s energy industry.
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