A NEW mechanism for electricity tariff adjustments for T20 domestic consumers will be announced once the main data base (Padu) system has finalised it, says Nik Nazmi Nik Ahmad.
The Natural Resources, Environment, and Climate Change Minister said based on consumption, those in the T20 group were enjoying more subsidies compared to domestic consumers in the B40 and M40 income groups.
“For example, a household in the T20 category has five, six and 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.
“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 the targeted subsidy cut meant for those in the T20 group after some in the B40 and M40 raised concerns that they might also be affected by such cuts.
Nik Nazmi said it was important for the government to have an integrated system to manage and coordinate the distribution of subsidies to eligible groups.
With the Padu system, expected to be completed by year’s end, in place, an adjustment mechanism would be made for the T20 group, the minister added.
He said between Jan 1 and June 30, the government had spent around RM10.76bil for electricity subsidies to ensure that 9.5 million users would not be impacted by the rising fuel cost for electricity generation.
Nik Nazmi added that the government had made subsidy savings of RM5.4bil during the same period as the cost had been passed on to consumers in a targeted manner.
