Electricity tariff up 15% next year, minister announces

Following weeks of speculation, Putrajaya today announced that electricity rates in Peninsula Malaysia will be up by 14.98% or 4.99 sen to 38.53 sen per kWh, and five sen for Sabah and Labuan, effective January 1 next year..

Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili announced the new rates in a press conference at the Parliament lobby today.

This move was anticipated after Putrajaya announced its plans to trim fuel subsidies for power producers in the first quarter of 2014.

Ministry secretary-general Datuk Loo Took Gee was quoted as saying that the reduction in fuel subsidies for the power sector was essential to stabilise the economy.

The current average tariff rate in Malaysia is 33.5 sen per kWh, which is 8.5 sen or 25.3% below the real cost, which is 42 sen per kWh.

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