PETALING JAYA: Targeted electricity subsidies for the T20 income group will be announced by the end of the year, after an integrated database system is established, says natural resources, environment and climate change minister Nik Nazmi Nik Ahmad.
He said at present, subsidies are provided based on electricity usage rather than consumers’ income, Bernama reported.
“If we take a T20 household that has five to six air-conditioners, a dryer and various other appliances, and its electricity bill is between RM500 and RM700 or more, it’s unfair for that household to receive more subsidies than others because the subsidies are based on usage,” he was quoted as saying.
“The T20 group benefits more from subsidies compared to M40 or B40 consumers, which is fundamentally unfair.”
Nik Nazmi said the T20 group should be encouraged to use solar energy, but stressed that the cost of renewable energy must be priced reasonably and competitively in line with current electricity rates.
He was responding to a question from Khoo Poay Tiong (PH-Kota Melaka) in the Dewan Rakyat today on plans to abolish electricity subsidies for the T20, and whether the government would encourage greater usage of solar energy among this income group.
On Monday, Prime Minister Anwar Ibrahim said the government will no longer provide electricity subsidies for the T20 income group.
In a parliamentary reply, he said the government will not increase the electricity tariff, except for the T20 group.