Power tariff to stay for now

KUALA LUMPUR: The electricity tariff for all consumers in the second half of 2022 will be maintained at the same rate as the first half of the year, says the Finance Ministry.

The ministry (MOF) in a statement said following the sharp rise in world fuel prices this year, the government had on June 24 this year decided on the matter even though the cost of electricity generation has increased.

In early 2021, the price of coal was around US$80 per tonne (RM357), but by the middle of 2022, it has surpassed US$400 a tonne.

“Accordingly, the government would bear an electricity subsidy of RM5.8bil for the benefit of all members of Keluarga Malaysia from the impact of rising electricity costs.

“The government will pay a sum of RM5.8bil to Tenaga Nasional Bhd (TNB) to ensure TNB was not affected by the sudden increase in the price of fuel for electricity generation in line with the Incentive Based Regulation (IBR) mechanism,” the MOF said in a statement.

It added that the cost increase in electricity generation also increased TNB’s working capital requirements.

“In this regard, the government will also guarantee TNB’s financing of up to RM6bil to ensure that TNB’s electricity supply generation operation will not be interrupted for the benefit of Keluarga Malaysia, in addition to catalysing the sustainability of the country’s energy industry,” he said.