PUTRAJAYA: The government today agreed to retain the electricity tariff rebate of 1.52 sen/kWh in the peninsula and to continue reducing the average electricity tariff of 1.20 sen/kWh in Sabah and the Federal Territory of Labuan for the period July 1 to Dec 31 this year as enjoyed in the past six months.
Energy, Green Technology and Water Minister Maximus Ongkili said following this, there would be no change in the electricity tariff rate imposed on consumers in the peninsula, Sabah and Federal Territory of Labuan for the period of July 1 until Dec 31.
For the peninsula, he said a 1.52 sen/kWh rebate involved an overall cost of RM758.03 million obtained via a tariff review under the Imbalance Cost Pass-Through (ICPT) mechanism for the period Jan 1 to June 30 this year.
“Among the factors which contributed to the granting of rebate is the drop in the price of liquified natural gas (LNG) and coal in the world market and the improvement in the efficiency of coal generation plants,” he told a media conference here, today.
Ongkili said in the government’s effort to reduce the fuel subsidy, the tariff review also took into account the review of piped gas prices in the peninsula which was raised by RM1.50/MMBtu from RM18.20/MMBtu to RM19.70/MMBtu effective July 1.
On the reduction of the average tariff rate, which was maintained at 1.20 sen/kWh ini Sabah and Labuan, he said it involved the offering of a subsidy for medium fuel oil and diesel and electricity tariff support subsidy, estimated at RM468 million for this year.
Ongkili said the electricity tariff rebate was given to all categories of Tenaga Nasional Bhd consumers in the peninsula and Sabah Electricity Sdn Bhd in Sabah, except domestic consumers who used electricity units of 300kWh and below a month, as consumers in this category were not involved with any electricity tariff increase since Jan 1, 2014.
“The government has formulated protective measures in the electricity tariff structure to reduce the burden of consumers on the subsidy rationalisation of piped gas cost,” he said.
He stressed that domestic consumers with usage units of 300kWh and below were not involved in any tariff increase, goods and service tax and Feed-in Tariff charge.
In addition, he said, the electricity bill payment exemption for consumption of RM20 and below was given to domestic consumers in the peninsula, Sabah and Sarawak.
Commercial and industrial users with electricity costs of at least 5% of overall company operation costs qualified for the Special Industry Tariff (TIK) and received discounts of between 3% and 10%.
“Still, TIK will be reduced in stages from 2016 and the Enhanced Time of Use tariff is introduced as a choice to commercial and industry users from Jan 1, 2016,” he said.
Ongkili added that a 10% discount would also be given in the monthly bill to government schools, government higher institutions of education, houses of worship and welfare institutions registered with the government.