Mega users hit, not T20

Paying the price: Those affected are consumers who have high electricity usage. — AZMAN GHANI/The Star

PUTRAJAYA: It won’t necessarily be the T20 household income group that will feel the pain of the removal of the subsidy for electricity, but all high-consumption domestic users.

While most domestic consumers in Peninsular Malaysia will not experience an increase in the electricity tariff for the next six months beginning July 1, those whose current monthly electricity bill is at least RM708 will see a minimum 25% increase in their bills.

Medium and high-voltage users from the industrial and commercial sector as well as state water and sanitation operators will enjoy reduced surcharges.

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Non-domestic users in the low-voltage category will also not experience any increase in their electricity tariff.

National Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said the government had allocated RM5.2bil for the electricity subsidy in line with the tariff adjustment.

“This means that the majority of domestic consumers and non-domestic low-voltage consumers will not be affected by the latest electricity tariff adjustment,” he said.

The minister said domestic consumers in the peninsula, with a monthly electricity consumption of 1,500 kWh (kilowatt-hour) or below, would not experience any increase in electricity tariff.

This, he said, accounts for 99% of domestic consumers.

Nik Nazmi said that domestic consumers with electricity usage exceeding 1,500 kWh or a minimum monthly bill of RM708 would be subject to a 10sen per kWh surcharge.

“An estimated 83,000 consumers, which is 1% of domestic users, will experience a minimum monthly increase of RM187 in their electricity bills.

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“The government is still providing a special subsidy of RM58mil for this category since the Imbalance Cost-Pass Through (ICPT) surcharge is not fully waived,” he told a press conference yesterday.

He said those affected were consumers who have high electricity usage and not necessarily those in the high-income group.

Nik Nazmi said micro, small and medium enterprises including restaurants, retail shops, bakeries, small workshops, farmers, livestock breeders, planters and similar businesses would not experience an increase in tariff.

Medium and high-voltage users from industrial and commercial sectors will enjoy a reduced surcharge from 20sen/kWh to 17sen/ kWh.

“This means that they will enjoy a monthly decrease in their electricity bills ranging from 28% to 35%,” he said.

Nik Nazmi said in line with efforts to improve the capacity and capability of water operators in providing treated and clean water to consumers, state water and sanitation operators would enjoy a reduction in surcharge rates from 20sen/ kWh to 3.7sen/ kWH.

This will take effect from July 1 to Dec 31.

“The government hopes the provision of this subsidy will help alleviate the cost of living for the people, especially during the economic recovery period, while ensuring the continued economic development of the country,” he added.