New electricity tariff necessary for country's fiscal consolidation, says TNB

New electricity tariff necessary for country's fiscal consolidation, says TNB
Business & Markets 2013
Written by Bernama
Tuesday, 17 December 2013 20:28

BANGI (Dec 17): The new electricity tariff to be implemented on Jan 1, is part of the government's subsidy rationalisation programme for fiscal consolidation and is necessary for the long-term good of the country’s economy, says Tenaga Nasional Bhd (TNB) President and Chief Executive Officer Datuk Seri Azman Mohd.

He said the capital intensive utility company spent at least RM6 billion annually, on capital expenditure and infrastructure maintenance.

"TNB is just a conduit. We are a collecting agent.

"The tariff hike has nothing to do with us, but we are getting blamed for it," he told reporters, after launching the memoirs of Tan Sri Ani Arope here, today.

Effective Jan 1, the average electricity tariff in Peninsular Malaysia will be increased by 4.99 sen/kWh to 38.53 sen/kWh, from 33.54 sen/kWh at present.

Azman said the increase would contribute about 18 per cent to capital expenditure, equipment; maintenance and new electrical infrastructure, while 82 per cent would be used to cover the increase in fuel costs.

He said the tariff review was essential for TNB to build more infrastructure, to ensure reliable and quality electricity supply.

The revision will not affect about 4.56 million, or 70 per cent of domestic consumers, who use 300kWh and incur a monthly bill of RM77 and below per month.

The rebate from the government for over one million domestic customers with a monthly bill of RM20 or below, will be maintained.