KUALA LUMPUR: The increase in coal prices has caused the cost of generating electricity to increase by 45%, according to Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan.
He said, however, the government had decided to give a rebate of two sen per kilowatt-hour for domestic consumers from February to June 2022, Bernama reported
“The government covers a subsidy of RM715mil using funds from the Kumpulan Wang Industri Elektrik.
“We do not impose any surcharge even though it should be released to consumers,” he said when winding up the debate on the motion of thanks for the Royal Address for the Ministry of Energy and Natural Resources (Ketsa) in Parliament yesterday.
Takiyuddin said that between July and December 2021, a total of RM1.672bil had been spent on fuel purchases for electricity generation.
This should have been released to consumers for the period from February to June 2022.
“With the sharp rise in coal prices in the global market, the actual coal price has reached US$105.09 (RM442) per tonne compared to the projected price in 2021 of only US$67.45 (RM284) per tonne.
“It means an increase in fuel prices of US$37.64 (RM158) per tonne.
“This is why the imbalance cost pass-through mechanism has to release costs to commercial and industrial consumers with a surcharge of 3.70 sen per kilowatt-hour,” he added.
Takiyuddin said commercial and industrial users were encouraged to explore the potential of solar energy through the installation of solar power systems for their own use by participating in a programme under Ketsa, namely the Clean Energy Metering Scheme 3.0.
“The ministry also advises industrial players to practice the efficient use of electricity by using equipment categorised as four-star and five-star certified by the Energy Commission,” he said.
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