Be prudent: Members of the public are reminded to reduce their electricity consumption. — MUHAMAD SHAHRIL ROSLI/The Star
Lower tariffs should mean lower prices, say pundits
PETALING JAYA: Retailers should not impose any more price hikes as the reduction of the electricity tariff by 1sen/kWh for the commercial and industrial sectors should benefit everyone, says the Consumers Association of Penang (CAP).
Its president Mohideen Abdul Kader said prices of goods should be reduced by between 20% and 30%, noting that the country was hit by a rising cost of living and slight price increases after the diesel subsidy rationalisation came into effect on June 10.
“Even if it is a one-sen reduction, it should benefit everyone. The price of goods must come down after the reduction in (electricity) tariffs for the commercial sector.
“We also hope that enforcement agencies will monitor and conduct regular checks on the price of goods,” he said when contacted yesterday.
Mohideen also urged the public to reduce their electricity consumption.
From July 1 until Dec 31, there will be no increase in the electricity tariff in Peninsular Malaysia. Commercial and industrial users will receive a reduction in the Imbalance Cost Pass-Through (ICPT) surcharge as well as streetlighting category surcharge under local authorities of 1sen/kWh (kilowatt-hour).
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Saravanan Thambirajah said lowering the ICPT surcharge would also mean businesses could not justify any price increase.
He said that while the reduction in the ICPT surcharge for commercial and industrial users would not make a big difference on the price of goods and services, it shows the government is taking measures to address the rising cost of living.
Earlier yesterday, the Energy Transition and Water Transformation Ministry announced the new rates, saying the matter was agreed by the government on Friday.
“It’s a decision that reflects the government’s commitment to ensuring that the well-being of the people continues to be safeguarded by ensuring domestic consumers continue to be protected through the targeted implementation of electricity subsidies,” it said in a statement.
The ministry said the government also agreed to lower the surcharge by 1sen/kWh for the streetlighting category (tariff G and G1) under the supervision of local authorities for the same period so that they can provide comprehensive lighting services in public areas.
It also announced that commercial and industrial users would enjoy a reduction in the ICPT rate of 1sen/kWh.
“The government hopes that the reduction in the ICPT surcharge rate for this category can continue to maintain the stability of the price of goods in the market while supporting the government’s efforts to encourage investments in Malaysia, thereby increasing employment opportunities for the people and stimulating the national economy,” it added.
According to the ministry, the targeted electricity subsidy to be borne by the government from July to December this year amounted to RM2.192bil.
“Although there is no increase in electricity tariffs in the peninsula until December this year, users are advised to always use electricity prudently and observe energy-efficient practices.
“Under the Save 4.0 Programme, consumers can receive an e-rebate of up to RM400 for the purchase of energy-efficient refrigerators and air-conditioners that are rated 4 or 5 stars by the Energy Commission,” said the ministry.
It also said that under the new Solar for Rakyat Incentive Scheme (SolaRIS), new users of the Net Energy Metering programme who submit their applications to the Sustainable Energy Development Authority on and after April 1 this year will receive a rebate of RM1,000 to RM4,000/kwAC.
It also said that on June 20, the government agreed to adjust the electricity tariff for NUR Power Sdn Bhd in Kulim Hi-Tech Park, Kedah, which was implemented under the ICPT mechanism, from July 1 to Dec 31.
“It involves domestic users with an electricity consumption of 1,500 kWh and below, who will not be charged any surcharge, while domestic users with electricity consumption above 1,500 kWh will be charged a surcharge at a rate of 5.50sen/kWh.
“Non-domestic users will be charged a surcharge rate of 5.50 sen/kWh,” said the ministry.
For consumers in the Federal Territory of Labuan, the ministry said the Federal Government has agreed to set the electricity tariff based on the rate set by the Sabah government for the period from July 2024 to December 2027.
