TNB's proposed tariff hike to be reviewed

TNB's proposed tariff hike to be reviewed
Malaysiakini
Mar 11, 06 6:39pm



The government is seeking a revision on the proposal for a 10 percent electricity tariff hike by power utility Tenaga Nasional Bhd (TNB).

An upward review will spare a larger segment of the population from the effects of the impending increase in electricity rates, Bernama reported today.

TNB had proposed to exempt those who bill a maximum of 100 kilowatt-hours, fixing that as a monthly consumption-based cut-off point. The government wants that to be revised to 200 kilowatt-hours.

Energy, Water and Communications Minister Dr Lim Keng Yaik said that would take into account the interests of the low-income group and industries that consume a lot of power.

TNB has been asked to submit the revised structure to the cabinet, he was quoted as saying.

Rising debts

Bernama reports that TNB president and CEO Che Khalib Mohamed Noh had earlier reportedly applied for a 10 percent hike in the electricity tariff this year.

The company had justified its request citing rising debts exceeding RM30 billion and skyrocketing operating costs as a result of rising fuel prices in the world market.

Following the spiral effect triggered by the recent fuel price hike, the Federation of Malaysian Manufacturers wants the supply contract between TNB and independent power producers reviewed.