Malaysian consumers are expected to have a surcharge imposed on their electricity bills next month due to the continuously rising fuel prices as a result of the conflict between Russia and Ukraine that started in February this year, according to a report by The Vibes.
National utilities company Tenaga Nasional Berhad (TNB) is facing difficulty in keeping rates at the current level due to the sharp rise in coal prices, which have increased by four times since the start of the Russia-Ukraine conflict, according to the report; coal is the source for nearly half of Malaysia’s required electricity.
Prices of the benchmark Newcastle coal hit its all-time high of US$440 (RM1,944) per tonne in March, which was up from US$67.50 (RM296.86) previously, and the price increase was driven by fear of a supply shortage as Western countries imposed sanctions on Russia’s financial system and energy products following Russia’s attack on Ukraine.
Putrajaya is understood to be considering the matter on whether it will allow the cost of the increased price of coal to be passed on to consumers, The Vibes wrote, also noting that a cabinet paper on the surcharge issue has been made available at a ministerial meeting yesterday. As of February 2022, the tariff for consumers remained at 39.45 sen per kWh, with a rebate of two sen per kWh without surcharge.
The Imbalance Cost Pass-Through (ICPT) formula is reviewed every six months, and determines if the cost of fuel is translated into the final electricity bill for consumers; the next ICPT review is due next month, The Vibes reported.
In a more recent update, the publication added that around five million households in Malaysia are likely to be spared the expected upcoming surcharge, citing a source that said consumers who are billed less than RM77 per month for electricity, or with a monthly consumption rate of 300 kWh or less may not be subjected to the surcharge.
The consumers who fall under this category of electricity usage is estimated to form around 70% of TNB’s domestic consumer base, and most of these are said to be from the lower-income groups, The Vibes reported. “The hike is expected to be implemented in July and it will affect 30% of household consumers and that is equivalent to 2.37 million consumers,” a source told the news outlet.
In February this year, business groups urged the Malaysian government to intervene and bear the costs of rising fuel prices, following the implementation of the electricity tariff surcharge of 3.7 sen per kWh from February to June for non-domestic (commercial and industrial) users.
A joint statement from 11 business associations and trade groups stated that the recent increase in surcharge would further driver inflation, and lead to the demise of many businesses, many of which would not be able to absorb the increase even if the economy is thriving.
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electric cars wont be the solution
No choice. Thailand already has a few rounds of increase.
But government needs to do something to develop Malaysia, to improve the economic, attract more investors (rather than chase them away like the 4 eyes kakak). Stop unethical political fights!
The government can only do so much to attract investors, when our talents/industry/products on offer are not as good as other countries.
Similar to cr*p cars, no matter how great we market or package them, it won’t last long. In some cases can be a detriment in the long run. Like how VW still remains in most people’s bad books, after they market like crazy back in the 2010s, then the DSG issue crops up. Once bitten, twice shy.
Don’t get me wrong, the government could’ve promote better policies both for local and global industries. However, both the product and the marketing needs to improve hand-in-hand. The private sectors need to step up and produce stuff that the world needs as well.
Subsidised RON95 users laugh at those EV users whom laughed at petrol car owners that might see targeted fuel subsidies.
OK la… take naik RON95 xpe
aiyo, susah lor…what also up.
Semua hike
Very soon, from B40-M40-T20, its going to be B80-M19-T1. The T1 being those menteri kayangan.
Under DAP rule, only T1 gets to own cars, the rest of jalan kaki
great vision
bus stops and train stations is a short walking distance from home office and school factory
The company I work for is 30km away without access to public transport and it is located in secluded area beside the river which was legalised ‘thanks’ to PH for turning illegal businesses white thru paying cash. So how do I go to work without car?
What happened to the abundance of natural gas which can be used for firing the gas turbines and boilers. Coal is not available in Malaysia. TNB has to answer this.
What happened to the abundance of natural gas which can be used for firing the gas turbines and boilers. Coal is not available in Malaysia. It is sent to Singapore and as LNG to other parts of the world.TNB has to answer this.