No electricity tariff hike
KOTA KINABALU: The electricity tariff in Sabah and Labuan will be maintained from July 1 to December 31, 2017 after the federal government decided to allocate RM468 million in subsidy to accommodate the rising coal prices and the generation of electricity throughout this year.
Energy, Green Technology and Water Minister Datuk Seri Maximus Johnity Ongkili said the electricity tariff would be maintained at 1.20 sen/kWJ in Sabah and Labuan and 1.52 sen per kilowatt-hour (kWh) in Peninsular Malaysia.
He said the cabinet during a June 21 meeting had agreed to the special subsidies for consumers in Sabah and Labuan, whilst RM1.303 billion will be spent to cushion the increase in fuel cost and electricity generation to consumers in Peninsular Malaysia from today till December 31, 2017.
“The increase in fuel cost and electricity generation in Peninsular is 2.4% higher than costs in the basic tariffs during January to June 2017,” revealed Maximus, adding the increase came largely from the coal components there.
He elaborated the RM1.303 billion allocation is funded from the Renegotiation of Power Purchase Agreements with First Generation Independent Power Producers (PPA Saving Fund).
“Through the decision, the Cabinet has agreed to provide a total rebate of 2.54 cents/kWh in Peninsular Malaysia comprising fuel surcharge of 1.02 cents/kWh and tariff rebate of 1.52 cents/kWh, all by utilizing the PPA Savings Fund for the period of July until December 2017,” he said at a press conference held at Wisma SESB here yesterday.
“For Sabah and the Federal Territory of Labuan, the Cabinet has agreed to maintain an electricity tariff rebate of 1.20 cent/kWh for the period of July to December 2017,” added the minister.
According to Maximus, the cabinet has also agreed to maintain the average rate of basic electricity tariff in Peninsular at 38.53 sen/ kWh, while the average electricity tariff rate in Sabah and the Federal Territory of Labuan remains at 34.52 sen/kWh.
“Overall, the adjustment of electricity tariffs under the Imbalance Cost Pass-Through Mechanism (ICPT) has enabled electricity consumers to enjoy total rebate of RM5.403 billion in the Peninsular Malaysia, and RM196.26 million in Sabah and the Federal Territory of Labuan, for the period of March 2015 to December 2017,” he said.
However, he said an exception had been made for the Kulim Hitech Park and a minor revision will be announced for the area soon.
Meanwhile, Maximus explained that Sarawak had been excluded from the federal revision for the past 30 years as the power of energy is under the state’s purview,
He also announced a lab to reduce System Average Interruption Duration Index (SAIDI) in Sabah.
“Stakeholders, the utilities, the private sector and consumer associations can send their representatives to the lab. The lab will take about one month of interaction.
“Members of the public and associations are invited so that the brains will not just come from KETTHA (Ministry of Energy, Green Technology and Water), SESB and TNB but also from the public. That is a major initiative, commencing in the later part of July,” he said.