The current electricity tariff for domestic and industry consumers in Peninsular Malaysia will be maintained at 38.53 sen per kilowatt-hour (kWh), while that of Sabah and Labuan at 33.32 sen per kWh, from Jan 1 until June next year.

However, during the same period, electricity tariff rebate for peninsular Malaysia will be at 1.52 sen per kWh compared with 2.25 sen per kWh from July until December this year.

For consumers in Sabah and Labuan, they will continue to enjoy a lower average electricity tariff of 1.20 sen per kWh.

Energy, Green Technology and Water Minister Maximus Ongkili said the rebates and tariff reduction would be passed on to all categories of consumers of Tenaga Nasional Bhd (TNB) in peninsular Malaysia and Sabah Electricity Sdn Bhd (SESB) in Sabah and Labuan except for domestic consumers with a consumption of 300 kWh of electricity or less per month.

(This is because the increase in the electricity tariff does not involve categories of users since Jan 1, 2014.)

The power tariff rate was decided by the cabinet, Ongkili said, adding that the tariff decision for peninsular Malaysia emanated from fuel cost savings and the Imbalance Cost Pass-Through (ICPT) of RM762.03 million for the July-December period this year.

He said the savings are due to lower LNG prices on the global market as well as efficiency improvements by gas and coal-fired power plants.

"Despite the rise in coal prices amid the fall of the ringgit's value against foreign currencies and the fuel subsidy rationalisation for the electricity sector following the rise in piped gas prices in peninsular Malaysia, the government is still able to maintain the current average electricity tariff at 38.53 sen per kWh," he said.

Piped gas prices in peninsular Malaysia have risen by RM1.50/MMBtu (from RM16.70/MMBtu to RM18.20/MMBtu).

The ICPT was implemented in peninsular Malaysia in January 2014 as a mechanism to pass through any changes in fuel and generation costs to consumers.

Ongkili said for Sabah and Federal Territory of Labuan, the tariff reduction could be maintained based on the drop in global crude oil prices.

Both Sabah and Labuan did not use the ICPT, he said.

Special industrial tariff

He said the savings in Medium Fuel Oil (MFO) and diesel subsidies had enabled the government to maintain the average electricity tariff rate of RM1.20 sen/kWh for a six months.

"The overall fuel subsidy for Sabah and Labuan is estimated at RM468 million for 2016.

"The increase in rebate and reduction in tariff does not affect the financial position or the operations of TNB and SESB due to the cost savings of ICPT and government subsidy," he said.

Ongkili said among the safety measures for consumers towards rationalisation of pipe gas subsidy prices included domestic users with usage of 300 kWh and below who would not be subjected to increase tariff, goods and services tax and Feed-in Tariff (FiT) charges.

He said commercial and industrial users with electricity costs of at least five per cent of overall company's operation costs were qualified to enjoy special industrial tariff which provides discount between three and 10 percent.

"The rebate for electricity bill of RM20 and below would be given to domestic users in peninsular Malaysia, Sabah and Sarawak," he said.

- Bernama