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PM: Electricity tariff hike must not burden the majority

LANGKAWI: Prime Minister Datuk Seri Anwar Ibrahim said today an increase in electricity tariffs should not "jeopardise the jeopardise the livelihoods of the majority of people".

Responding to a proposal from Tenaga Nasional Bhd (TNB) on a new tariff that was set to be implemented in July next year, he said the government won't allow an increase in tariffs that could affect the people.

"The previous increase involved only the upper class, which I refer to as the super rich (mahakaya) or industries reporting profits.

"The majority of the people were not affected by the rise in electricity cost.

"While I understand that costs are increasing, it must not jeopardise the livelihoods of the majority."

He said this after attending Friday prayers at Masjid Al-Hana, Kuah, Langkawi.

He added that the matter had been referred to Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof, who is also deputy prime minister.

Anwar, who is finance minister, said a clarification on the matter would be issued by Fadillah and TNB.

Yesterday, TNB said a new tariff schedule with a base tariff of 45.62 sen per kilowatt-hour for Peninsular Malaysia under Regulatory Period 4 (RP4) was proposed to be implemented starting July 1, 2025.

Under Regulatory Period 3 (RP3) between 2022 and 2024, the base tariff was set at 39.95 sen/kWh.

It said any tariff discrepancies from January to June 2025 will be funded through the Electricity Industry Fund (KWIE).

However, earlier today, its chief financial officer Datuk Nazmi Othman said the government hasn't decided on the proposed 14 per cent hike in base tariffs for the three-year regulatory period 2025-2027 (RP4).

He said the current tariff schedule, which has been in place since 2014, will continue to be in effect with no change in the electricity tariff rate and tariff structure until June 30.

Nazmi said the government will continue to protect 85 per cent of the nine million domestic consumers by providing affordable electricity tariffs.

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