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Wednesday, 9 March 2016 | MYT 1:35 PM

No reduction in electricity tariff due to weaker ringgit

KUALA LUMPUR: Despite declining oil prices, Tenaga Nasional Berhad (TNB) will not lower its electricity tariff due to the weaker ringgit.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said lower costs for petroleum, coal and gas had no impact on electricity tariff.

"The lower price of crude oil, coal and gas does not translate into lower electricity tariff.

"This is due to the currency exchange and weaker ringgit resulting paying more for fuel and power generation costs," he said this when answering a question by Datuk Ngeh Koo Ham (DAP-Beruas) in Dewan Rakyat Wednesday.

He said the tariff had been fixed for a four year period beginning 2014 until 2017 at a rate of 38.53sen per kilo watt hour.

However, Ongkili said the Government was aware of the rising cost of living and had introduced measures to protect consumers. 

Among them was the imbalance cost pass-through mechanism where TNB would absorb cost.

He added that TNB enjoyed subsidy savings of RM760mil which was passed on for the benefit of consumers.

He clarified that TNB's purchase of 1Malaysia Development Berhad's power generation assets had no bearing on electricity tariffs.

At the Parliament lobby, he reiterated that electricity tariff  would not likely be raised even after 2017.

Tags / Keywords: Datuk Seri Dr Maximus Ongkili , Tenaga Nasional Bhd , weaker currency , ringgit , no reduction in tariff , Parliament

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