Targeted T20 electricity subsidy to be announced by year-end: Nik Nazmi

Targeted T20 electricity subsidy to be announced by year-end: Nik Nazmi

National utility database to see shift from consumption-based mechanism

KUALA LUMPUR – The implementation of targeted electricity subsidy for those under the T20 category will be announced after the national utility database (Padu) system is completed at the end of this year.

Natural Resources, Environment and Climate Change Minister, Nik Nazmi Nik Ahmad said currently the subsidy for the group is based on consumption, not on their income. As such, he said the targeted electricity to be based on income for the T20 category could only be implemented when the Padu system is fully completed.

“Assuming that a T20 household has five or more conditioners, a dryer and several other equipment, the electricity bill will be between RM500 and RM700 or more.

“It is unfair for them to receive a much higher subsidy and gain more in terms of ringgit compared to the M40 and B40 groups, because it (subsidy) is based on consumption,” he said during the Ministers’ Question Time at the Dewan Rakyat sitting today.

Nik Nazmi also agreed that the T20 group should be encouraged to use solar power, but the price of the renewable energy must be reasonable and competitive with conventional electricity sources.

He said this in reply to a supplementary question from Khoo Poay Tiong (Kota Melaka-PH) who wanted to know why the T20 group will no longer enjoy electricity subsidy and whether the government will encourage them to use solar power as an alternative source of electricity.

In response to Khoo’s original question on subsidy savings following the imbalance cost pass-through (ICPT) adjustment in January 2023, Nik Nazmi said there was a savings of RM5.4 billion from January 1 to June 30 and the cost had been passed on to consumers in a targeted manner.

“The ICPT cost for the period from July to December 2022 amounted to RM16.16 billion, equivalent to a surcharge rate of 27 sen/kWh which should be passed on to consumers for the period January to June 2023.

“However, the government maintained the rebate of 2 sen/kWh to domestic users and the surcharge of 3.70 sen/kWh to non-domestic users in the low voltage category (tariffs B and D) and specific agricultural categories (tariffs H, H1, and H2) for the period January 1 until June 30.

“The surcharge rate for other non-domestic users is 20 sen/kWh for the same period,” he said.

– Bernama, May 25, 2023

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