Umno Youth: Put power tariff hike on hold to avoid cost surge

PETALING JAYA: Umno Youth today urged the government to put on hold its decision to raise electricity tariffs for non-domestic users.

Its vice-chief Shahril Hamdan said the government’s approval for Tenaga Nasional Bhd’s imbalance cost pass-through (ICPT) surcharge of 1.35 sen per kilowatt per hour (kWh) would result in higher electricity bills.

He said although the surcharge would not affect domestic consumers, all users who exceed 300 kWh per month will no longer receive the rebate provided by the previous government.

“The ICPT rebate was enjoyed by all segments of consumers for more than three years under the Barisan Nasional government since the introduction of the ICPT mechanism in 2015.

“But the Pakatan Harapan (government), which is less than two months old, has not only terminated the rebate but also imposed a surcharge by tariff adjustment.

“This decision means that 2.5 million or about 36% of domestic consumers who exceed 300 kWh a month will no longer receive the rebate. In simple terms, the electricity bills go up,” he said in a statement today.

Shahril said the termination of the rebate together with the surcharge of 1.35 sen per kWh on factories, shops and commercial premises would raise operation and production costs.

This might result in businesses raising their prices for goods and services, he said.

“Coupled with the higher tariffs imposed by Gas Malaysia for businesses and high-end condominiums which receive natural gas through the pipe system, the impact will be felt by all segments of consumers, whether residential or commercial.

“The tariff increases for natural gas and electricity will have a multiplying effect on the cost of business operations, and will eventually impact households.

“This will lead to a rise in the cost of living for the people,” he said.