Govt to maintain electricity tariff for all consumers in second half of 2022: MOF

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

The Finance Ministry (MOF) in a statement today said following the sharp rise in world fuel prices this year, the government on June 24 2022 had decided on the matter even though the cost of electricity generation has increased.

In early 2021, the price of coal was around US$80 per tonne (RM357), but by the middle of 2022, it has surpassed US$400 a tonne.

“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 (IBR) 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 that TNB’s electricity supply generation operation will not be interrupted for the benefit of Keluarga Malaysia, in addition to catalyzing the sustainability of the country’s energy industry,” he said. —BERNAMA/Pic by MUHD AMIN NAHARUL