The electricity tariff hike in the beginning of this year was done so that the government won't have to subsidise TNB's operations with public funds later, said Prime Minister Najib Abdul Razak.
He said the tariff hike was inevitable because 85 percent of TNB's costs were fuel costs, and fuel prices have been increasing.
"If (TNB) incurs losses, then what? There are all sorts of implications...
"In the end, we would have to spend public money to subsidise TNB. Is this what we want?
"It is not that we want to burden the people, but the reality is that we have no other option," he said.
This would mean less funds would be available for other government services, he said, such as building new schools and hospitals.
Najib was speaking to some 2,000 TNB staff at a function held in conjunction with the GLC's Labour Day celebrations.
The tariff hike came into effect on Jan 1 and affects those using more than 300 kilowatt-hours per month.
It came amid a slew of other price increases, including essential items such as petrol, diesel and sugar, leading to public outrage over the rising cost of living.
He said the tariff hike was inevitable because 85 percent of TNB's costs were fuel costs, and fuel prices have been increasing.
"If (TNB) incurs losses, then what? There are all sorts of implications...
"In the end, we would have to spend public money to subsidise TNB. Is this what we want?
"It is not that we want to burden the people, but the reality is that we have no other option," he said.
This would mean less funds would be available for other government services, he said, such as building new schools and hospitals.
Najib was speaking to some 2,000 TNB staff at a function held in conjunction with the GLC's Labour Day celebrations.The tariff hike came into effect on Jan 1 and affects those using more than 300 kilowatt-hours per month.
It came amid a slew of other price increases, including essential items such as petrol, diesel and sugar, leading to public outrage over the rising cost of living.
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