KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) wants the Pakatan Harapan government to maintain the current electricity tariff rates in Peninsular Malaysia for the period of Jan 1, 2018 to Dec 31, 2020.
“We are also concerned whether there will be an increase in electricity tariff rates due to any adjustments to the natural gas tariff for the power sector,” it said.
The average effective tariff of natural gas for non-power users, including the manufacturing sector, will be increased from July 1, 2018 to RM32.69 per mmBtu (one million British thermal units) from the current RM32.52 per mmBtu.
“While FMM is steadfast in its commitment towards energy subsidy rationalisation, and although the 0.5% increase is lower than the previous period’s 22.97%, it is nevertheless still an increase in energy costs,” it said in a statement today.
FMM said the government should maintain the current electricity tariff rates given that the new surcharge of RM0.77 per mmBtu was only 48% of the previous surcharge of RM1.62 per mmBtu, and that numerous concurrent increases in cost had already been imposed on businesses.
It said this would help relieve the energy cost burden on the manufacturing sector and benefit the people as household consumers.
FMM also urged the government to maintain the incentive-based regulation framework through the imbalance cost pass-through mechanism until 2020 to help sustain the competitiveness of businesses, especially small and medium enterprises, without any further increase in energy costs.