No Electricity Tariff Hike Until June 2015. Phew. Wait, What?
After June, another increase is due in December.
By Mei Mei Chu — 06 Nov 2014, 09:07 AM — Updated over 9 years ago
Good News! Electricity Will Be Cheaper, But Maybe Not For Long...
The federal government today announced power tariff cuts averaging between three and five per cent effective March 1 this year, amid significant savings by Tenaga Nasional Berhad due to the sharp drop in fuel prices, Datuk Seri Maximus J. Ongkili said today.
themalaymailonline.com
He said the ICPT cost saving was translated into a tariff reduction of 2.25 sen/KWH which amounted to 5.8% of TNB’s average tariff of 38.53 sen/kWh.
thestar.com.myHe said with the new tariff, consumers can save between RM13.50 and RM45 on their monthly bills. The reduced tariffs are valid till June 30.
The new tariff for the peninsula will see a reduction of 2.25 sen per kWh, but would only affect those who consumed more than 300kWh a month, said Ongkili.
themalaysianinsider.com
New electricity tariff in Peninsula Malaysia from March 1st onwards.
Image via Malaysiakini/Facebook5 NOV 2014: Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili has proudly announced that there will be no increase in electricity tariff until June next year
The government has decided that there will be no increase in electricity tariff until June 30 next year.
His exacts words were "The ministry would like to announce that in the interest of the welfare of the rakyat, the government has decided to maintain the current electricity tariffs rate until June 2015."
"The ministry would like to announce that in the interest of the welfare of the rakyat, the Government has decided to maintain the current electricity tariffs rate until June 2015," he told reporters at Parliament lobby on Wednesday.
thestar.com.myDon't breath a sigh of relief just yet. That just means that come 30 June 2015, your electricity bills will be higher than ever.
The electricity tariff was initially due to increase by 3.11 sen per kWh in July this year, but the government decided to minimise the burden of its ongoing subsidy rationalisation programme
Energy, Green Technology and Water Minister Datuk Seri Maximus J. Ongkili said the tariff was initially due for an upwards revision in July this year by 3.11 sen per kilowatt-hour (kWh), after calculating the increase in the cost of the various fuel sources used for power generation.
mmail.com.my
"To ensure the tariff is maintained up till June 2015, the government will manage the cost of RM1.683 billion for fuel and generation costs, by using savings generated through the renegotiated Power Purchase Agreements (PPA) with the first generation Independent Power Producers (IPP) and maintaining the current price of piped gas supplied by Petronas to the electricity sector," he told a news conference at the Parliament lobby.
mmail.com.my
Ongkili explained that the federal government will foot RM847.96 million of the cost, which will cover the cost of fuel and power generation at non-gas based power plants. The rest of the cost, amounting to RM836 million, will be absorbed by national oil giant Petronas in the form of foregone revenue from piped gas. The cost is calculated over a 12-month period backdated to July this year, he added.
mmail.com.my
This initiative saves us from paying an additional 3.11 sen per kWh
"As a government that is caring and concerned for the welfare of the people, this decision was made to minimise the impact of subsidy rationalisation and fluctuating global prices. "This move saved consumers from paying an additional 3.11 sen per kilowatt per hour," he said at the Parliament lobby today.
themalaysianinsider.com
However, the government would not be able to absorb the costs any longer than that. The minister warns the public to prepare for the inevitable price hike.
Ongkili, however, said it is likely that the government will be unable to stave off a tariff hike after June 30 next year, as the government will only have RM170 million in savings left from the renegotiated PPAs by that time. He said it would be best for the public to prepare for the inevitable, especially as Malaysia starts to align the cost of the various fuels used in power generation with global prices.
mmail.com.my
"Even if the tariff does not increase, it does not mean that the public should waste power. We urge them to use power efficiently and reduce wastage by using energy efficient appliances, turning off appliances that are not in use, setting your air conditioner at 24 degrees celcius or higher.
mmail.com.my
After the hike in June 2015, another increase is expected in the following December. The electricity tariff is reviewed every six months based on changes in fuel and generation costs.
Ongkili said the tariff would be maintained despite the imbalance cost pass through (ICPT) mechanism implemented in January 2014, which allows for a review of the tariff rate every six months, based on changes in fuel and generations costs.
According to the ICPT, another hike was due in June, followed by another one in December.
Ongkili said the decision was made to minimise the impact of subsidy rationalisation and fluctuating global prices. "However, this action will not be sustainable in the long term and will adversely impact the country's economic growth and development," he said.
The Malaysian Insider reports that TNB net profit increased from RM5.4 billion to RM6.4 billion this year
It was reported that Tenaga Nasional Bhd's (TNB) net profit this year increased from RM5.4 billion to RM6.4 billion. Its revenue rose to RM42.79 billion from RM37.13 billion.
themalaysianinsider.com