The Ministry of Finance (MOF) has announced that the electricity tariff for all consumers in Malaysia in the second half of 2022 will remain at the same rate as the first half of the year. In a statement today, the ministry said that this is despite the sharp rise in world fuel prices in 2022 which has inadvertently increased the cost of electricity generation.
As reported by Bernama, MOF clarified that the government has decided to not increase the electricity tariff on 24 June 2022. In order to maintain the tariff, the government has provided an electricity subsidy of RM5.8 billion to cover the rising costs. In early 2021, the price of coal was around USD80 (RM357) per tonne but in mid-2022, the price had surpassed USD400 (RM1787) a tonne.
MOF asserted,
“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,”
The statement further stressed that the government will guarantee TNB’s financing of up to RM6 billion in order to ensure that the company’s electricity supply generation operation will not be interrupted for the benefit of the rakyat. Besides that, such measures were also put in place so as to catalyse the sustainability of the country’s energy industry.
So, what do you guys think of the statement by MOF? Share your thoughts with us in the comments!
