Based on the report by the National Action Council on the Cost of Living, Prime Minister Datuk Seri Anwar Ibrahim (DSAI) stated that he has retracted an earlier proposal to increase the electricity cost for households as it will burden the people.

DESI stated that only MultiNational Companies or MNCs and large export-oriented companies will be subjected to an electricity tariff hike. However, he assured the MNCs and large companies that the tariff hike would be carried out in phases.

The announcement by the Prime Minister not to increase the tariffs for households and Small and Medium Enterprises (SMEs) was welcome news to the Federation of Malaysian Consumer Associations (Fomca) although it will result in a RM30 billion crunch to government coffers.

In January this year, the government decided to maintain the current electricity tariff rate for domestic users in Peninsular Malaysia for the Regulatory Period (RP3) from Feb 1 to Dec 31, 2024 under the Incentive-Based Regulation (IBR) mechanism.

However, it was decided that a surcharge of 3.7 sen/kWj will be imposed on all non-domestic users such as commercial and industrial companies. This move was acceptable to consumer groups who felt the government was exercising prudent and cost effective management.

The Ismail Sabri government announced in August that the current water and electricity tariff rate for domestic users will be maintained and TNB announced that the Imbalance Cost Pass-Through (ICPT) mechanism will continue between July 1 and Dec 31, 2022.

-THE MALAYSIA VOICE