PUTRAJAYA: Consumers in Sabah and Labuan can still enjoy the same electricity tariff rebates; while those in Peninsular Malaysia will see their rebates trimmed next year.
The Energy, Green Technology and Water Ministry today announced that effective January to June next year, the base electricity tariff nationwide will remain unchanged at 38.53sen per kWj.
Consumers in Sabah and Labuan consumers will still enjoy the existing rebates at 1.20 per kwj for the same period.
However, those in the peninsular will see their rebates reduced to 1.52sen per kwj from the existing 2.25sen per kWj.
This means that consumers in the peninsular will have to pay more for their electricity due to the reduction in rebate.
Minister Datuk Seri Maximus Ongkili said the decision to maintain the electricity tariff in the peninsula was due to the savings in fuel costs and generation, or Imbalance Cost Pass-Through (ICPT), totalling RM762.03 million for July to December this year.
"ICPT savings are derived from the reduction in the price of liquefied natural gas in the global market and the efficiency of gas power generators and coal plants.
"In-line with the rationalisation of energy subsidies for the electrical sector, the price of piped natural gas in the peninsula will increase by RM1.50 per MMBtu (from RM16.70 per MMBtu to RM18.20 per MMBtu) by Jan 1 next year,” he told a press conference today.
Maximus said although the price of coal has increased due to the depreciation of the ringgit, the government is still able to maintain the overall tariff rate at 38.53sen per kWj.
He said as for Sabah and Labuan, for which the ICPT mechanism does not apply, the decision to maintain the electric tariff was based on the decline in crude oil price in the global market
He said savings in medium fuel oil and diesel subsidies had enabled the government to maintain the lower tariff rebate at 1.20 sen per kWj in Sabah and Labuan, as it did between July to Dec this year.
He said the overall fuel subsidies for Sabah and Labuan is estimated at RM468 million for 2016.
"This decision covers all categories of Tenaga Nasional Berhad and Sabah Electricity Sdn Bhd consumers, except domestic consumers using 300 per kWh and below.
This, he reasoned, was because the increase in the electricity tariff has not involved this category of consumers since Jan 2014.
He said the electricity tariff subsidies would not have any impact on Sabah Electricity Sdn Bhd's operations and financial position.