PETALING JAYA: The decision by the government to maintain rebates for households with lower electricity consumption was welcomed by some but it has drawn mixed reactions from others who fear that it may translate to other forms after six months.
Bank manager Rashidah A, 49, from Kuala Lumpur questioned what will transpire after six months with people trying to figure out the rest of the year.
“The same rate is applicable for six months, then what’s going to happen after that? How is the public going to bear the cost?
“Is the government planning to upscale the salary especially for the private sector in the B40 and M40 brackets?
“Cost of goods like groceries and food are forever increasing, and there is no control measure by the government,” she said in response to the tariff announcement yesterday.
She added, with the current weather being unfavourable and too hot, the majority of houses use air-conditioners during daytime. As such it will definitely result in higher electricity usage.
It will directly impact business whereby cost will be transferred back to the consumer via service or goods provided, she added.
However, SME business owner Shanti Gunasegaran, 35, from Petaling Jaya was more positive about the news stating that the decision to remove the rebate from those who use exorbitant amounts of electricity is a good move to reduce usage by users.
“This will lead to better consumption and be sustainable in the long run. Additionally, the target is only for those who use an excessive amount,
“As such, normal households will not be very affected, especially now that the economy is not as good as it was with prices of goods and basic necessities increasing.
“Therefore, there is no extra burden on consumers in general,” she said.
Marketing manager Gerard Lee, 43, from Subang Jaya is also of the opinion that the six-month period will change consumer behaviour in terms of consumption.
“While I think it is good to have targeted subsidies, the majority of us are M40, and we have children, thus consumption is high.
“So, it is good to be prudent in this current economic scenario as businesses will translate their bills towards customers, as such, I foresee an increase in cost of operations being put onto customers.
“Basically, we are in a catch-22 situation whereby we get a subsidy for six months but businesses who consume high will have an increase in operations, but after six months it is like open season
“So who really benefits in the end?” he said.
It was announced that the government has kept electricity tariffs unchanged for commercial and industrial customers for the first half of 2024 but widened its targeted subsidy mechanism by removing a rebate for households with monthly electricity consumption of at least RM230.
In the revised subsidy mechanism, households consuming between 600 kilowatt per hour (kWh) to 1,500 kWh of electricity monthly, translating to a bill of between RM230 and RM738, will not qualify for the two sen per kWh rebate.
