KUALA LUMPUR: A fairer mechanism for determining electricity tariff charges for domestic and industry users is currently in the works, says Datuk Seri Fadillah Yusof.
The Deputy Prime Minister and Energy Transition and Water Transformation (PETRA) minister said this includes reviewing the possibility of different rates charged for domestic and industry users.
“This way, there could be different rates for domestic and industries, providing a more just and fair mechanism for our users.
“Shielding domestic users is our priority,” he said during Question Time in the Dewan Rakyat on Thursday (Oct 15).
Fadillah also said the Energy Commission has been assigned to carry out an in-depth study on enhanced measures to shield consumers.
He was responding to a supplementary question by Azli Yusof (PH-Shah Alam) who asked whether there are plans to extend the 800kWh electricity subsidy threshold for domestic users in Peninsular Malaysia beyond Dec 31 this year and whether it will be reviewed.
Azli also asked about the factors that resulted in increasing household electricity bills as of late.
To this, Fadillah said surge in global fuel prices due to the West Asia geopolitical crisis was among the factors.
He said the surge is also closely linked to the security disruptions in the Strait of Hormuz, which accounts for approximately 20% of global crude oil and liquefied natural gas (LNG) trade and serves as a major route for 40% of the fuel used by Malaysia.
Fadillah also said the prolonged period of higher temperatures resulted in the increased frequency and duration of use of high-capacity electrical appliances, particularly air conditioners.
“Other factors, such as reduced hydroelectric power generation due to prolonged hot weather and scheduled outages at coal-fired power plants, have resulted in greater operational reliance on imported liquefied natural gas (LNG).
“As a result, the fuel procurement costs incurred for electricity generation during the crisis have been higher than those projected under Regulatory Period 4,” he said.
However, the deputy Prime Minister affirmed that the government will do its best to ensure affordable rates for domestic users alongside establishing more competitive rates for industry players when compared to other countries.
