Govt affirms 85pct of electricity users unaffected by tariff revision

New Straits Times

5 days ago

KUALA LUMPUR: The government has reaffirmed that 85 per cent of electricity users in Peninsular Malaysia will not be affected by the revised tariff structure introduced on July 1.
Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof said most domestic users and micro, small and medium enterprises (MSMEs) would continue to receive rebates under the new structure.
"Only 15 per cent of users will experience adjustments. Some may see slight increases, while others may even see reductions, regardless of their sector," he said during the question-and-answer session in the Dewan Rakyat today.
The deputy prime minister said this in response to a supplementary question from Datuk Seri Takiyuddin Hassan (PN–Kota Baru), who cited Malaysian Data Centre Alliance's statement that the government's move would raise operational costs, which would ultimately be passed on to consumers.
Takiyuddin had also highlighted that Tenaga Nasional Bhd (TNB) posted a net profit of RM1.44 billion for the second quarter of 2024, compared to RM327.9 million in the same period last year.
He questioned whether the government intended to reintroduce subsidies or rebates for the rakyat, noting that nearly RM6 billion was allocated for such support in 2021 and 2022.
Following this, Fadillah said the government's current approach focuses on encouraging energy efficiency and promoting the use of renewable energy among higher consumption groups.
"The current approach focuses more on energy efficiency, whether by encouraging users to switch to renewable energy sources or by adopting more energy-efficient systems, which in turn will help reduce consumption levels.
"The emphasis is no longer on the type of business, but rather on the amount of energy consumed, which will determine their eligibility for rebates and incentives," he said.
Addressing TNB's net profit, Fadilah said it is expected that the electricity utility company, which is a public listed company, generates profits to meet shareholder expectations.
He added that part of these profits would be reinvested into strengthening and upgrading the national grid, especially as Malaysia increases its renewable energy capacity.
"We are now focusing on this because many renewable energy sources have already been installed, and TNB must ensure that the grid system is upgraded.
"If not, the grid will be unable to receive renewable energy, which would ultimately compromise energy security for the public.
"Therefore, a portion of the profits will be reinvested to improve the grid system and service delivery, to ensure a reliable and affordable electricity supply for the people."