New mechanism on power tariffs for T20 once Padu finalised, says Nik Nazmi

  • Nation
  • Thursday, 25 May 2023

KUALA LUMPUR: A new mechanism for electricity tariff adjustments for T20 domestic consumers will be announced once the Padu system has finalised it by the year end, says Nik Nazmi Nik Ahmad.

The Natural Resources, Environment, and Climate Change Minister said currently those in the T20 group are enjoying more subsidies compared to those in the B40 and M40 income group, who are domestic consumers, based on their consumption.

"If a household, let's assume it's in the T20 category, has five, six, or seven air conditioners, a dryer, and many other appliances, and their electricity bill is RM500, RM600, RM700, or more.

"It is unreasonable for them to receive higher subsidies compared to the B40 and M40 groups based on their consumption.

"This is because they will enjoy more subsidies in terms of ringgit compared to B40 and M40 consumers. In principle, it is not fair," he said in reply to a supplementary question from Khoo Poay Tiong (PH-Kota Melaka) during the Minister's Question Time.

Khoo had asked the ministry to clarify on the targeted subsidy cut meant for those in the T20 group after some in the B40 and M40 were concerned that they might also be affected with such cuts.

Nik Nazmi said that it was important for the government to have an integrated system which will be handled by the Main Database (Padu) system to manage and coordinate the distribution of subsidies to eligible groups.

With the Padu system which is expected to be completed by year end, he said that an adjustment mechanism will be made for the T20 group.

Meanwhile, he said that between Jan 1 and June 30 this year, the government had spent around RM10.76bil for electricity subsidies to ensure that 9.5 million electricity users will not be impacted with the rising fuel cost for electricity generation.

The government, he added, had made subsidy savings of RM5.4bil ringgit between the same period as the cost had been passed on to consumers in a targeted manner.

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