15 per cent hike in electricity tariff

Electricity and gas subsidies will be reviewed, with the average electricity tariff in Peninsular Malaysia to be

raised 14.89 per cent or 4.99 sen per kilowatt-hour (kWh) to 38.53 sen/kWh from Jan 1, 2014.

The current electricity tariff is 33.54 sen/kWh.

For Sabah and Labuan Federal Territory, the overall electricity tariff will be raised by five sen kWh or an increase of 16.9 per cent from the current rate, that is 29.52 sen KWJ to 34.52 sen kWh, to be effective on the same date.

However, 70.67 per cent or 4.56 million of the overall 6.45 million domestic users in Peninsular Malaysia and 62 per cent or 260,000 of the 418,000 domestic users in Sabah and the Labuan Federal Territory, who consumed 300 kWh or less a month, are not involved under this review.

Announcing the tariff rationalisation in Parliament today, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the government would continue to assist by providing rebates to consumers whose electricity bill was RM20 and below until Dec 31, 2014.

He said the government will save about RM4 billion in subsidies for the energy sector next year following the electricity subsidy review, which can be channeled towards improving infrastructure, schools and public facilities for the people.

Ongkili said the total subsidy for the energy sector this year was RM14 billion.

"The increase in the electricity tariff is a reflection of the government's policy to gradually reduce subsidies, not only for the energy sector but others as well.

"This is also to reflect market prices to ensure greater efficiency in selected sectors and investors can also respond to actual pricing," he added.