PUTRAJAYA: There will be no increase in electricity tariff for the nine million domestic users.
Prime Minister Datuk Seri Ismail Sabri Yaakob said the Cabinet made the decision at its weekly meeting on Wednesday.
“The government will continue with subsidies worth more than RM700mil so that domestic users are not affected (by the new rates),” he said on Twitter.
The Energy Commission said under the Imbalance Cost Pass-Through (ICPT) mechanism, which is reviewed every six months, a rebate of 2 sen/kWh will remain for all domestic users with no surcharge imposed between Feb 1 and June 30.
“Therefore, there will be no increase in electricity tariff for domestic users in the peninsula,” it said in a statement.
However, under a new tariff implemented from Feb 1, 2022, to 2024, the commission said a 3.7 sen/kWh surcharge will be imposed on all commercial and industrial users.
“To maintain the rebates and to bear the ICPT surcharge cost for all domestic users, the government has allocated RM715mil from Kumpulan Wang Industri Elektrik for the purpose,” it said.
The commission pointed out that between July 1 and Dec 31 last year, there was an increase in fuel costs and other generating costs of RM1.67bil, following a hike in coal prices that had soared up to US$200 per tonne.
Meanwhile, in Kuantan, Ismail Sabri visited the Kuantan 188 Tower, one of the latest and iconic tourism products developed by the East Coast Economic Region Development Council (ECERDC) on the banks of the Kuantan river.
The Prime Minister, who took a buggy ride from Kuantan City Complex, where he chaired an ECERDC meeting earlier, arrived at the tower at 12.10pm, reported Bernama.
Present were the Mentris Besar from the three east coast states, Datuk Seri Wan Rosdy Wan Ismail (Pahang), Datuk Seri Dr Ahmad Samsuri Mokhtar (Terengganu) and Datuk Ahmad Yakob (Kelantan).
Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, Minister in the Prime Minister’s Department (Economic Affairs) Datuk Seri Mustapa Mohamed and Chief Secretary to the Government Tan Sri Mohd Zuki Ali were also in attendance.
At the tower compound, the Prime Minister also inspected and was briefed on the recreational vehicle (RV) or caravan, one of the latest tourism projects proposed by ECERDC for development in a district in Pahang.
He then proceeded to the Kuantan 188 Tower skydeck, which offers an unobstructed 360º view of the city.
The Kuantan 188 Tower is the second tallest tower in Malaysia, after KL Tower.
In a statement, ECERDC chief executive officer Datuk Baidzawi Che Mat said RV tourism is fast becoming a popular trend as it provides a more open tourism concept for various outdoor and personal activities.
“The RV tourism industry is fast growing in Australia, China, South Korea, Japan and New Zealand, and has been an important component of the economy in those countries.
“This opens up opportunities for Malaysia in general, and ECER, in particular, to capitalise on this trend to create a new tourism growth opportunity in ECER and explore the potential of developing the RV industry in this region,” he said.
Baidzawi said since the tower opened on Dec 15, more than 23,000 people had visited its skydeck, which depicts the shape of the white terumtum flower once found abundant on the Kuantan river bank.