Upward Power Tariff Review Possible As Government May Reduce Subsidy For Power, Says TNB

KUALA LUMPUR, (Bernama) -- There is a possibility of an upward review of the electricity tariff as the government is likely to reduce its subsidy for electricity, Tenaga Nasional said Thursday.

Photo Credit: siew.sg

Chairman Tan Sri Leo Moggie said the government had heavily subsidised the current tariff particularly for gas.

"So, the decision of whether the tariff will remain the same or be increased, will not be made by TNB but will be decided by the government.

"As a country, it will be difficult for us to sustain the level of subsidy that is now being enjoyed.

"So, depending on how the subsidy is being treated, that will have an impact on the cost of the power tariff," he told a press conference after announcing the company's third quarter financial results today.

Moggie was responding to speculations that the country's power utility giant might increase electricity tariff after the 13th General Election, which was held on May 5.

The government started subsidising power tariff since 2008 and households using electricity RM20 and below a month have been exempted from payment.

Moggie said efficient power usage by the producer and consumer was the main factor to sustain the power industry.

"If everybody is active in utilising electricity in more efficient ways as possible, that will help mitigate any impact," he added.

In January, the government said the rebate on monthly electricity bills under RM20 has been extended by the government to all eligible domestic consumers until December this year.

Last year, the government spent RM146 million for 1.1 million domestic consumers nationwide.

For more stories: