The government on Wednesday announced that the electricity tariff in the peninsula will be maintained at the current level of 38.53 sen per kilowatt-hour until June next year.

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the decision was made to lessen the impact of the rationalisation of fuel subsidies and the uncertainty of fuel prices globally.

He said for this, the government would bear the cost of fuel for power generation amounting to RM1.683 billion via several saving mechanisms.

"The cost is accommodated using savings from the renegotiation of Power Purchase Agreements (PPA) with First Generation Independent Power Producers and maintaining the price of piped gas supplied by Petronas to the power sector," he told reporters at Parliament lobby Wednesday.

The current rate in the peninsula was effective Jan 1.

Ongkili said the electricity tariff in Peninsular Malaysia was set via the Incentive-based Regulatory system involving the implementation of an emissions fuel costs (ICPT) imbalance mechanism introduced in January.

The mechanism enabled the government to review the electricity tariff every six months based on changes in the prices of fuel and cost of power generation, he said.

"The ICPT mechanism takes into account changes in the price of piped gas, liquefied natural gas, coal, medium fuel oil, distillates and other generation costs such as costs related to PPAs, displaced cost from Renewable Energy and the cost of buying electricity from abroad," he clarified.

In this regard, the Marudu Member of Parliament urged the public to use electricity prudently.

At the same time, he also reminded the power companies to endeavour to provide electricity supply which was efficient, adequate, dependable and cost effective in the interest of the well-being of the people.