No electricity tariff hike for households, SMEs, says Anwar

PUTRAJAYA: Only multinational and large export-oriented companies will be subjected to an electricity tariff hike, says Datuk Seri Anwar Ibrahim.

The Prime Minister said that the hike, would not be directed at households and small- and medium-sized enterprises (SMEs).

"Based on the report by the National Action Council on Cost of Living on Tuesday (Dec 13), we decide that the earlier proposal to increase the electricity tariff will not proceed as this will burden the rakyat.

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"We acknowledged that if nothing is done, there will be an impact on the government finance which is quite high, exceeding some RM30bil annually," the Prime Minister said at a press conference after chairing the Cabinet meeting on Wednesday (Dec 14).

However, Anwar, who is also Finance Minister, said that there would be a slight increase in electricity tariffs for multinational and large export-oriented companies.

"The current tariffs are too low for them and the subsidy should not be given to the large companies that make high profits," he said.

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He added that the increase in tariffs would not affect the small and medium enterprises and companies involved in agricultural and food production.

He said that Energy and Natural Resources Minister Nik Nazmi Nik Ahmad would be announcing the details of the tariff rates for affected sectors.

In January this year, the government decided to maintain the current electricity tariff rate for domestic users in Peninsular Malaysia for the Regulatory Period 3 (RP3) from Feb 1 to Dec 31, 2024 under the Incentive-Based Regulation (IBR) mechanism.

In August, then prime minister Datuk Seri Ismail Sabri Yaakob announced that the current water and electricity tariff rate for domestic users in Peninsular Malaysia will be maintained.

The Tenaga Nasional Bhd (TNB) had announced that the imbalance cost pass-through (ICPT) mechanism will continue to be implemented for the period of July 1 until Dec 31, 2022.