The ministry of finance of Malaysia has announced that it will be paying national utlities company Tenaga Nasional Berhad (TNB) RM5.8 billion for it to maintain the current electricity tariffs for the second half of 2022 in order to not further burden Malaysian users, despite the steep increase in the costs of electricity generation.

“The government will pay the RM5.8 billion sum to TNB to ensure that TNB is not adversely affected by the sharp increase in fuel prices for electricity generation in line with the incentive-based regulation. Therefore, the government will bear the RM5.8 billion subsidy to benefit all members of Keluarga Malaysia,” the ministry of finance said in its statement.

A payment of up to RM6 billion has been guaranteed to TNB by the Malaysian government to ensure that the company’s electricity generating operations will not be disrupted, alongside ensuring the sustainability of the country’s energy industry, according to the ministry of finance.

The ministry of finance stated that the coal was priced at US$80 (RM359) per metric tonne at the beginning of 2021, and this had increased to (RM1,796) per metric tonne by the middle of this year.

This latest development follows last month’s report that the Malaysian government would continue offering domestic users a rebate of two sen per kWh until the end of this year.

For motorists, in the context of electric vehicles, the maintaining of electricity rates for domestic users means that users of EVs who recharge their vehicles at home will continue to replenish their EVs without a change in rates for the time being.

Meanwhile, natural resources minister Datuk Seri Takiyuddin Hassan said last month in the Dewan Rakyat that the surcharge for non-domestic users will remain at 3.70 sen/kWh, which is lower than the actual of rate of Imbalance Cost Pass-Through (ICPT) of 11.81 sen/kWh.

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