MALAYSIAN NEWS: Electricity tariff to go up by about 7% from June 1

 
PUTRAJAYA: The electricity tariff will go up by about 7% from June 1, in a bid to rein in the ballooning subsidy bill.

However, the increase will not affect 75% of domestic users who mainly consume less than 300 kWh per month. The gas tariff for electricity and industrial sectors will rise by RM3/MMBtu every six months from June 1 to Dec 2015.

After that the price will be based on market rates.

The announcement on Monday was made at a joint press conference by Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop and Minister of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui. They said the 7.12% hike was due to the increase in natural gas price to the power sector.

“In spite of the increase, the Government and Petronas is still bearing gas subsidies estimated at RM25.64bil this year.

“The new price is still competitive compared to the market rate of alternative energy such as liquefied petroleum gas (LPG) and Medium Fuel Oil, which has risen from from USD37.05 per barrel to USD93.98,” Nor Mohamed said, adding that the decision would not affect local industry competitiveness in the long term.

“On the contrary, this will enable the industrial sector to make adjustments and to increase their competence and productivity,” said Nor Mohamed, who is also the minister in charge of the Economic Planning Unit.