KUALA LUMPUR: Businesses have been told to 'toe the line'following the government's announcement on lower electricity surcharges for commercial users.
Consumers' Association of Penang (CAP) president Mohideen Abdul Kader expressed hopes that the business sector would not increase prices of goods.
In fact, business operators should reduce their prices, given the savings on utility bills, he said.
"There is no justification to raise the prices as traders are receiving subsidies (under the rationalisation scheme).
"We hope the enforcement agencies will do regular checks (at business premises)."
He said shopkeepers should also display "before-and-after" prices following the electricity tariff reduction.
Mohideen also advised the public against wasting electricity.
He said consumers should cut down on electricity wherever possible and switch off electrical appliances if they're not being used.
The government announced today that it decided to maintain the electricity tariff for domestic users in Peninsular Malaysia until the end of the year.
However, the rates for industrial and commercial users will see a reduction of one sen from 3.70 sen per kWh to 2.70 sen/kWh
The Energy Transition and Water Transformation Ministry said the move involves 1.7 million non-domestic customers in the low voltage tariff categories (B and D); specific agriculture (H, H1 and H2), and 259 water and sewerage operators.
It said the move sought to stabilise the prices of goods, support the government's efforts to encourage investments in Malaysia, and improve job opportunities and boost the economy.
Meanwhile, the Federation of Malaysian Manufacturers (FMM) said it was disappointed with the minimal reduction in imbalance cost pass-through (ICPT) surcharge for the second half of 2024.
Its president Tan Sri Soh Thian Lai said a reduction in surcharge had also been expected during the previous review period in the first half of 2024 amidst the moderating coal prices in the past one year.
He said the industry hoped for more transparency in the calculation of the surcharge and at arriving at the 1 sen/kWh surcharge reduction that had been announced for the non-domestic users.
"Additionally, FMM would like to reinforce its proposal for the government to review the eligibility of SMEs (small and medium entreprises) under medium voltage (MV) category to enable them to qualify for a lower surcharge similar to the rate given to the water services sector.
"Industries, in general, including (small-medium industries) SMIs, continue to operate under a challenging environment as uncertainties around economic growth and inflation outlook in 2024 remain a concern following the impact of subsidy rationalisation and prolonged geopolitical conflicts," he said in a statement.
He said micro, small and medium enterprises (MSMEs) account for 98 per cent of total business establishments in Malaysia, employing 7.3 million of our workforce.
Malaysian MSMEs also contribute to 37.4 per cent of the country's gross domestic product (GDP) and the continued high surcharge environment would not be tenable for SMEs to remain competitive in the long-run.
"Moving forward, as the government is currently undertaking review of the Incentive Based Regulation (IBR) for Regulatory Period (RP) 4: 2025 – 2027, FMM hopes that the base tariff review, while addressing the revenue-cost structure mismatch in preparation for the energy transition and third-party access arrangement, must ensure that the industrial tariff rate remains competitive and attractive in the region," he said.