KUALA LUMPUR: The Energy Transition and Water Transformation Ministry has given its assurance that the determination of electricity tariffs in the peninsula will take into accounts all aspects, including the people's welfare.
Its minister Datuk Seri Fadillah Yusof said the ministry and the Energy Commission are still in the process of finalising the new tariffs, which are expected to come into effect in July next year.
He said no decision has been made on the new tariff.
"As stated by the prime minister (Datuk Seri Anwar Ibrahim), we will not allow any increase which would burden the people," he said in a statement today.
Fadillah said the ministry was not informed by TNB prior to the latter's announcement on Thursday. Any announcement on the tariffs, he said, would be done by the government.
He said the review of the electricity tariffs was due to study again the price of fuel, including coal and gas.
He said in the Regulatory Period 3 (RP3) for 2022 to 2024), coal prices were forecast at US$79 per metric tonne while gas prices were determined via a two -tier pricing with the Reference Market Price (RMP) formula.
He said the post-Covid-19 environment as well as the global energy crisis meant that the cost of fuel has risen sharply.
Fadillah said the government remains committed to protect domestic users as well as micro, small and medium enterprises and ensure that the tariffs are competitive and affordable.
The government, he said, would continue its targeted electricity subsidy initiative.
"This will ensure that 85 per cent of domestic users who use 1,500 kWj and below monthly would not be affected," he said.
He said commercial and industrial users who are major electricity consumers and reap large profits have to pay the actual rates.
"However, those in this category have an alternative where the government encourages solar installation and battery energy storage systems in their premises.
"They can also adopt energy efficient practices such as by conducting an energy audit in collaboration with energy service companies," he said.