KUALA LUMPUR: There will be no hike in electricity tariffs for all categories of domestic users, as well as commercial and industries, for the period between July to December this year.
Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin said based on the imbalance cost pass through (ICPT) mechanism, the cost of fuel and the increase of other generating cost that need to be imposed on users through the surcharge for the same period has amounted to RM1.592 billion, which is an increase of 0.39 cent per kilowatt-hour (kWh).
However, she said, to reduce the burden of the people as well as the commercial and industrial sectors, the government took various steps to reduce the cost.
“The ministry, through the Energy Commission has made adjustments on the outcome and electricity costs in 2018 and 2019 under the Incentive-Based-Regulation (IBR), based on the provisions in the Regulatory Implementation Guidelines (RIGs), and managed to secure a total savings of RM336.70 million.
“The ministry also received approval from the Cabinet to subsidise the electricity tariffs through the allocation of funds from Kumpulan Wang Industri Elektrik (KWIE) of RM107.16 million,” she said during oral question time in Dewan Rakyat today.
She was replying to a question by Datuk Hasbullah Osman (BN-Gerik) on whether the government would revise the new electricity tariffs following the declining prices of global coal and gas in recent months.
Yeo said although the market price of fuel has fallen recently, the ICPT setting for the period between July to December is based on the average fuel price for the period between January to June.
She also said the ministry is drafting the Energy Efficiency and Conservation Act to encourage efficient energy usage to reduce electricity consumption and save electricity bills.
Yeo added an engagement and discussion session with the members of parliament (MPs) would be held to obtain feedback on the Bill. - Bernama