The federal government has raised electricity tariffs by an average of 7.12 percent beginning June 1 as part of its subsidy reduction exercise. The average rise is 2.23 sen/kW unit, from the current average rate of 31.31 to 33.54 sen/kW unit while natural gas prices are also set to rise by RM3 per mmBtu every six months until it reaches market levels by 2016, when its price would be fully floated.
According to Energy, Green Technology and Water Minister Peter Chin (left in picture), domestic users who use less than 300kW unit per month or RM77 on their bill will not be subjected to this new electricity pricing scheme, which is multi-tiered according to usage - this means that 4.4 million or 75 percent out of a total 5.94 million households would not be affected by the new tariff.The rate of monthly usage below 200kW unit will stand at 21.8 sen/kW unit while for usage between 201 to 300kW unit the tariff will remain as 33.40 sen/kW unit and these two rates are for the 75 percent of households.
The 23.5 percent or 1.39 million domestic users affected by the new tariff are those using 301kW to 1000kW units, the tariff has been raised from 0.1 to 10 percent, or RM0.07 to RM30.30.
The government has to fork out RM122 million annually in order to provide free electricity to 900,000 users who record less than RM20 usage monthly - hence, the waiving of the electricity bill for these users would cease on Dec 31, 2011.
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