TNB to bear bulk of RM248mil electricity bill relief cost

 Energy transition and water transformation minister says TNB will absorb most of the fuel adjustment and retail charges, while the government covers the SST exemption.

The electricity relief scheme introduced in September covers households using up to 800 kilowatt-hours of electricity a month, equivalent to an estimated bill of RM328 or less.

PETALING JAYA:

Tenaga Nasional Bhd (TNB) will bear most of the RM248 million cost of the government’s four-month electricity bill relief scheme for households, says energy transition and water transformation minister Fadillah Yusof.

He said RM180 million had been allocated to exempt households from additional fuel adjustment charges, with the government and TNB sharing the cost for September.

TNB will bear the full cost of these charges from October to December, Fadillah, who is also a deputy prime minister, said in a written parliamentary reply to Lim Guan Eng (PH-Bagan).

The utility company will also absorb RM36 million in retail charges, while the government will bear RM32 million in sales and service tax (SST) exemptions.

The relief scheme, introduced in September, covers households using up to 800 kilowatt-hours (kWh) of electricity a month, equivalent to an estimated bill of RM328 or less.

Eligible households are exempt from fuel adjustment surcharges, retail charges and SST until Dec 31. The scheme is expected to benefit about eight million households, or 90% of domestic electricity users in the peninsula.

The government raised the eligibility limit from 600kWh to 800kWh following complaints about higher electricity bills amid the hotter weather and haze.

In September, TNB estimated that it would absorb between RM120 million and RM150 million in additional costs under the scheme.

However, the ministry did not disclose TNB’s exact share of the RM248 million, as the fuel adjustment costs for September were shared with the government.

Lim also asked whether the eligibility limit could be further raised to 1,000kWh a month to help households facing higher electricity consumption.

Fadillah said the proposal would require a study of costs, funding requirements and the number of households likely to benefit.

He said the ministry was also working with the Energy Commission, TNB and the body responsible for purchasing electricity from power producers to review fuel adjustment charges from 2027.

The review will consider electricity consumption and fuel costs, as well as ways to distribute additional electricity generation costs more fairly among consumer groups, including through the “causer-pay” principle.

Fadillah said any decision to extend the relief scheme would be made after the review.

“The government welcomes proposals to improve the scheme, including raising the electricity bill protection limit to 1,000kWh a month,” he said. - FMT