Malaysia: No change in electricity tariff for now, says Ongkili

Malaysia: No change in electricity tariff for now, says Ongkili

There will be no increase in electricity tariff from July 1 to December 31,
2017, said Minister of Energy, Green Technology and Water, Datuk Seri
Maximus Johnity Ongkili.

He said the electricity tariff would be maintained at 1.52 sen per
kilowatt-hour (kWh) in Peninsular Malaysia and 1.20sen/kWJ in Sabah and
Labuan.

He said in order to maintain the tariff rebate, the government has to come
up with a subsidy of RM1.30 billion due to rising coal prices to generate
the electricity supply for Peninsular Malaysia.

"As for Sabah and Labuan, the subsidy is some RM468 million to accommodate
the rising coal prices and the generation of electricity throughout 2017,"
he told reporters here today.

He said the rebate tariff for Sabah and Labuan was possible through the
Medium Fuel Oil fuel and diesel subsidy and support subsidies by the federal
government's electricity tariff.

"The RM1.30 billion allocation for Peninsular Malaysia was by using the
Power Purchase Agreement Savings Fund, a fund set-up to accumulate savings
from the re-negotiation of power purchase agreements with the first-
generation independent power producers," he said.

Ongkili said the tariff rebate was applicable to all Tenaga Nasional Bhd
consumers in Peninsular Malaysia and of Sabah Electricity Sdn Bhd in Sabah
and Labuan.

He said the government has agreed to maintain an average electricity tariff
at 38.53 sen/kWJ in the peninsula and 34.52 sen/kWJ for Sabah and Labuan.

The Imbalance Cost Pass-Through (ICPT), a mechanism approved by the
government and implemented by the Energy Commission, has recorded an
increase of 1.02sen/kWh.

"The increase in electricity supply was due to additional gas cost by
RM1.50/mmBTU (one million British thermal units to the power sector from the
current RM21.20/mmBTU to RM22.70/mmBTU and the impact of foreign exchange
rates on the ringgit.

"The increase has resulted in a surcharge of 1.02 sen/kWh for customers
which would be borne by the government," he said.

Ongkili said the adjustment of electricity tariffs upon the fuel prices and
imbalanced generation has enabled users to enjoy a RM5.40 billion rebate in
Peninsular Malaysia from March 2015 to December 2017.

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Link to Original Article:
http://www.themalaymailonline.com/malaysia/article/no-change-in-electricity-
tariff-for-now-ongkili-says

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com