Summary

  • Prime Minister Anwar Ibrahim clarifies that electricity tariffs will only be raised for industrial users and the “maha kaya” (ultra rich).

  • He tells Dewan Rakyat that 85 percent of users will not be affected.

PARLIAMENT | Prime Minister Anwar Ibrahim clarified today that electricity tariffs will only be raised for industrial users and the “maha kaya” (ultra rich).

"I reiterate that the increase in electricity rates for industry will occur according to the Imbalance Cost Pass-Through (ICPT) method starting in July.

"Eighty-five percent of the people will not be affected by this increase," he told the Dewan Rakyat during Prime Minister Question Time.

In responding to Bersatu supreme council member Wan Ahmad Faysal Wan Ahmad Kamal (PN-Machang) who asked for clarification, Anwar said the hike in electricity rates must be done to fund other sectors such as healthcare and education.

"Why should we defend the ‘maha kaya’?

"If we don't tax the rich, where will we get the money for allocations to schools and hospitals?" Anwar said.

Yesterday, Anwar defended the hike in electricity tariffs after Associated Chinese Chambers of Commerce and Industry president Ng Yih Pyng raised concerns that the increase could have knock-on effects that lead to higher costs of doing business and inflation.

‘Higher fuel costs’

Last year, Tenaga Nasional Berhad announced a 14.2 percent increase in the base electricity tariff for Peninsular Malaysia effective July this year, from 39.95 sen/kWh to 45.62 sen/kWh.

It cited higher fuel costs as the main reason for the increase.

For context, the base tariff refers to the average tariff borne by all electricity users. The actual tariff imposed differs based on the type of user, and consumption trends.

The final bill is also affected by any surcharge or rebates under the ICPT scheme, which is adjusted every six months to reflect the actual fuel prices.

TNB previously assured there would be no increase in electricity tariffs for 85 percent of domestic users for the first half of this year, as the government is absorbing the cost through mechanisms such as the Electricity Industry Fund.

The next tariff review is slated for July 2025.