Ministry: Cost of generating electricity increases by 45%


  • Energy
  • Tuesday, 15 Mar 2022

KUALA LUMPUR: The increase in coal prices has caused the cost of generating electricity to increase by 45 per cent, said Energy and Natural Resources Minister Datuk Seri Takiyuddin Hassan today.

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.

"The government covers a subsidy of RM715 million 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 today.

Takiyuddin said that between July and December 2021, a total of RM1.672 billion had been spent on fuel purchases for electricity generation, which 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 per tonne compared to the projected price in 2021 of only US$67.45 per tonne.

"It means an increase in fuel prices of US$37.64 per tonne. This is why the imbalance cost pass-through (ICPT) 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 practise the efficient use of electricity by using equipment categorised as four-star and five-star certified by the Energy Commission," he said. - Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 0
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

KETSA , Takiyuddin Hassan , ICPT , Solar energy

   

Next In Business News

Digi.Com proposes change of name to CelcomDigi Bhd
PETRONAS, ExxonMobil to jointly develop carbon capture projects
AirAsia X posts 324% rise in passengers to 337k
Measat inks MoU with Parcel365 and M2B Services on Digital Village365 initiative
HeiTech Padu bags RM38.6mil contract from MOHE
FBM KLCI continues losing streak, down for third day
Oil prices advance on US growth, Chinese recovery hope
Akio Toyoda set to remain a force at Toyota, even as he bows out
Asian FX, stocks rise as strong U.S. GDP data aids risk sentiment
Asian equities hit 9-month high as recession fears wane

Others Also Read