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Putrajaya will maintain the electricity tariff for all consumers in the second half of 2022 at the same rate as the first half. – The Malaysian Insight file pic, August 27, 2022.

THE government will maintain the electricity tariff for all consumers in the second half of 2022 at the same rate as the first half.

The Finance Ministry, in a statement today, said following a sharp rise in world fuel prices this year, the government, on June 24, had decided on the matter even though the cost of electricity generation had gone up.

Early last year, the price of coal was around US$80 per tonne (RM357), but by the middle of 2022, it had surpassed US$400 a tonne.

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“Accordingly, the government will bear an electricity subsidy of RM5.8 billion for the benefit of all members of Keluarga Malaysia from the impact of rising electricity costs.

“The government will pay a sum of RM5.8 billion to Tenaga Nasional Bhd (TNB) to ensure TNB is not affected by the sudden increase in the price of fuel for electricity generation, in line with the Incentive Based Regulation mechanism,” said the statement, which added that the cost increase in electricity generation also increased TNB’s working capital requirements.

“In this regard, the government will also guarantee TNB’s financing of up to RM6 billion to ensure its electricity supply generation operation will not be interrupted for the benefit of Keluarga Malaysia, in addition to catalysing the sustainability of the country’s energy industry,” he said. – Bernama, August 27, 2022.

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