At a press conference, Nik Nazmi said domestic users who consume less than 1,500 per kilowatt hour (kWh) of electricity a month will not be charged higher tariffs.
“This makes up 99% of domestic users in the peninsula,” he said.
On the other hand, domestic users who use more than 1,500kWh a month, equivalent to a monthly RM708 electricity bill, will be imposed a 10 sen/kWh surcharge.
He estimated that about 83,000 domestic users will experience a 25% increase in their electricity bills.
“However, the government is still bearing RM58 million in subsidies specifically for this category of users, since the imbalance cost pass-through (ICPT) surcharge is not fully imposed.”
Commercial users given 3 sen/kWh surcharge reduction
The minister also said the surcharge of 20 sen/kWh on medium- and high-voltage non-domestic industrial and commercial users will be reduced to 17 sen/kWh.
“This means they will enjoy a 28% to 35% decrease in their monthly electricity bills,” he said.
Nik Nazmi said low-voltage non-domestic users will not be charged higher tariffs with the ICPT surcharge maintained at 3.7 sen/kWh for them. This means small and medium-sized enterprises (SMEs) will not experience higher electricity bills, he said.
He added that water and sewerage operators will be given a reduction in surcharge from 20 sen/kWh to 3.7 sen/kWh.
Putrajaya will spend a total of RM5.2 billion to continue subsidising the cost of electricity for these various categories of consumers from July 1 to Dec 31, he said.
He said the government hoped that this would reduce the cost of living for people and ensure the nation’s economic development would continue.
Previously, Nik Nazmi had said RM10.76 billion was allocated to subsidise electricity for domestic consumers and low-voltage non-domestic consumers from January to June.
In May, the minister said targeted electricity subsidies for the T20 income group will be announced by the end of the year, once an integrated database system is established.
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