KUALA LUMPUR: Electricity tariff in Malaysia is unlikely to see any changes, although there has been a dip in global coal and natural gas prices.
This is because the current price of around US$90 per tonne for coal and RM28 per MMBtu for natural gas is still higher than the base rate of US$75 and RM27.20, respectively, from the previous review.
Tenaga Nasional Bhd chairman Tan Sri Leo Moggie said the price is determined by the Energy Commission and there is a pricing structure every six months that relates to the cost of fuel.
“If the overall cost of fuel in the previous six months is higher than the actual cost of production of electricity during the last six months, then a surcharge will be issued to the consumer.
“The regulation is in place and it is understood by the investors. From our point of view, of course we expect the rules and regulations to be maintained.
“This is reflective of what has happened in the fuel market, something beyond the control of the utilities,” he said on the sidelines of the Perdana Leadership Foundation CEO Forum.
He said as long as the policy on the review of the fuel cost and imbalance cost pass-through is in place, the cost of electricity generation would be reviewed every six months.
On March 25, Prime Minister Tun Dr Mahathir Mohamad said the government is scrutinising a proposal to reduce the electricity tariff in the country in line with the drop in coal and natural gas prices.
Pressed further on whether there would be a change in tariff, Moggie said it was not for him to anticipate and it was up to the government to undertake any revision.