KUALA LUMPUR: No decision has been made regarding electricity tariff hikes in Peninsular Malaysia as of now, says Deputy Prime Minister Datuk Seri Fadillah Yusof.
Fadillah, who is also the Energy Transition and Water Transformation Minister, emphasised that his ministry has neither been consulted nor informed by Tenaga Nasional Bhd (TNB) about any recent announcements concerning tariff increases in the peninsula.
"As stressed by the Prime Minister (Datuk Seri Anwar Ibrahim), any increases that could burden the public will not be allowed,” he said in a statement on Friday (Dec 27).
Fadillah reiterated that the ministry, along with the Energy Commission (ST), is still in the process of finalising the new electricity tariff schedule, which is expected to take effect starting July 2025.
He explained that the review of the base electricity tariff is necessary due to the need to reassess fuel prices, particularly for coal and gas.
Fadillah said the government guarantees that the determination of electricity tariffs in the peninsula will take into account all aspects, including public welfare and well-being.
"In this matter, any announcement regarding electricity tariffs in the peninsula will be issued by the government,” he said.
For domestic users and micro, small, and medium enterprises (MSMEs), Fadillah said the government remains committed to protecting them to ensure that tariffs are competitive and affordable.
In addition, he said the government will continue providing targeted electricity subsidies to ensure that 85 percent of domestic users with monthly electricity consumption of 1,500 kilowatt-hours (kWh) or less will not be affected.
He added that commercial and industrial users with high electricity consumption and substantial profits would need to pay electricity costs at actual market rates.
However, Fadillah said the government encourages such users to install solar panels and energy storage systems at their premises and implement energy efficiency initiatives, such as conducting energy audits in collaboration with Energy Service Companies (ESCOs) and implementing energy efficiency programmes to identify potential electricity savings at their premises.
On fuel prices, he said during the third regulatory period (RP3) from 2022 to 2024, the projected price of coal was set at US$79 (RM353.30) per metric tonne, and gas prices were determined using a two-tier pricing formula based on the Reference Market Price (RMP).
In the first tier, for gas volumes up to 800 million standard cubic feet per day (mmscfd), the floor price was set at RM24/MMBtu, and the ceiling price at RM30/MMBtu, while the average price for gas usage above 800 mmscfd was projected at RM33/MMBtu.
However, post-Covid-19 and amid the global energy crisis, fuel prices increased sharply, with coal prices for the fourth regulatory period (RP4) from 2025 to 2027 projected at US$97 (RM433.80) per metric tonne while for monthly gas usage up to 800 mmscfd the floor price at RM24/MMBtu and ceiling price at RM35/MMBtu.
"The average price for gas usage exceeding 800 mmscfd is projected at RM46/MMBtu,” Fadillah said.
TNB, in its filing with Bursa Malaysia yesterday, had stated that the proposed new tariff schedule with a base tariff of 45.62 sen per kilowatt-hour (kWh) for Peninsular Malaysia under RP4, set to be implemented starting July 1 next year, is still at the proposal stage.- Bernama
