Malaysia – Miti: No increase to electricity tariffs for non-commercial, industrial consumers

• Feb 24, 2023

KUALA LUMPUR, 24 — Electricity tariff will remain the same for domestic consumers who are non-commercial and industrial users, International Trade and Industry Ministry (Miti) said.

The Ministry said as for non-domestic users who are in the low voltage (LV) tariff category, they will not experience any increase in electricity tariffs.

“Through using the Imbalance Cost Pass-Through (ICPT) (to set the electricity tariff), electricity tariff for domestic users, i.e. those who are not among commercial and industrial users following the adjustment of electricity tariffs in the Peninsula, remains the same.

“Non-domestic consumers in the LV tariff category consisting of micro, small and medium businesses, including restaurants, grocery stores, bakeries, small workshops and others of the like will also not experience any increase in electricity tariffs.

“The government has allocated RM8.74 billion in subsidies to this category of users,” the Ministry said in a Parliamentary written reply yesterday.

The Ministry was responding to PAS’ Permatang Pauh MP Muhammad Fawwaz Mohamad Jan who asked what type of mechanism the Ministry will use to prevent cost increases for the manufacturing industry that could impact the end users.

Yesterday, Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad said the electricity subsidy for the T20 (top 20 income group) group must be reviewed as the group can afford to pay a more competitive tariff.

He cited how in some countries like Singapore that do not have electricity subsidies, the tariff is driven by market forces. Subsidies are given but re targeted.

Source: https://www.malaymail.com/news/malaysia/2023/02/24/miti-no-increase-to-electricity-tariffs-for-non-commercial-industrial-consumers/56533