No decision made on electricity price hike in Peninsular Malaysia at this time – Fadillah.
Fadillah said PETRA was not informed or consulted by Tenaga Nasional Bhd (TNB) regarding the recent announcement of electricity price hike in Peninsular Malaysia.
KUALA LUMPUR: Deputy Prime Minister Datuk Seri Fadillah Yusof said that no decision has been made on electricity bill hike in Peninsular Malaysia until now.
He, who is the Minister of Energy Transition and Water Transformation, said his ministry, PETRA, was not informed or consulted by Tenaga Nasional Bhd (TNB) about the recent announcement of electricity tariff hike in Peninsular Malaysia.
“The Prime Minister (Datuk Seri Anwar Ibrahim) stressed that any increase that inconveniences the people is not allowed,” he said in a statement today.
He said, as previously informed, PETRA and the Energy Commission (ST) are still in the process of setting a new electricity tariff schedule which is expected to come into effect in July 2025.
Fadillah said the assessment of the basic electricity price was carried out because it was necessary to re-examine the prices of fuels, especially coal and gas.
Fadillah said that the government ensures that the decision on electricity prices in the Peninsula will consider all aspects, including the welfare and well-being of the people.
“In this regard, any announcement on electricity tariffs in the Peninsula will be made by the government,” he said.
For home users as well as micro, small and medium enterprises (PMKS), Fadillah said the government will continue to work to protect them by ensuring that the prices charged are reasonable and affordable.
The government will continue to provide electricity subsidies openly to ensure that the 85% of home users who use electricity of 1,500 kilowatt-hours (KwJ) or less will not be affected.
He said that users from the business and industrial sectors that use a lot of electricity and earn high profits will have to pay their electricity bills according to the actual rate.
Fadillah said the government encourages users in these categories to install solar panels and energy storage batteries at their premises. They are also advised to implement energy saving measures, such as conducting energy audits with Energy Service Companies (ESCOs) and following programmes that help identify ways to save electricity consumption at their premises.
On fuel prices, he stated that in the third regulatory period (RP3) which starts from 2022 to 2024, the expected price for coal is US$79 (RM353. 30) per metric ton. Meanwhile, gas prices are determined using a two-tier pricing system based on the Reference Market Price (RMP) formula.
In the first stage, if the gas volume reaches up to 800 million cubic feet per day (mmscfd), the minimum price is set at RM24 per MMBtu, and the maximum gas sales price is set at RM30 per MMBtu. For gas consumption exceeding 800 mmscfd, the average price is expected to be RM33 per MMBtu.
After COVID-19 and the global energy crisis, fuel prices have risen rapidly. For the years 2025 to 2027, coal prices are expected to be US$97 (RM433. 80) per ton. Monthly gas consumption of 800 million mmscfd will be charged a minimum price of RM24/MMBtu and a maximum price of RM35/MMBtu.
“The average price for gas consumption exceeding 800 mmscfd is expected to be RM46 per MMBtu,” he said.
TNB, in a filing with Bursa Malaysia yesterday, stated that the new tariff schedule with a base price of 45.62 sen per kilowatt-hour (KwH) for Peninsular Malaysia under RP4, is proposed to come into effect on July 1. However, this proposal is still at the discussion stage.
