Election Promise Fulfilled: Anwar Assures No Burdensome Electricity Tariff Increase
No Burden on Business Community
Prime Minister Datuk Seri Anwar Ibrahim has reassured that any increase in electricity tariffs will not burden the business community, stating that 85 per cent of households will continue to receive subsidies. Speaking at the Chinese New Year celebration organized by the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM), he emphasized that low-income households will remain unaffected by the scheduled tariff review in the second half of 2025.
Understanding Electricity Tariffs in Malaysia
The basic electricity tariff in Malaysia is set by the Energy Commission under the Incentive-Based Regulation (IBR) framework and is reviewed every three years. In addition to the basic tariff, there is the Imbalance Cost Pass-Through (ICPT) mechanism, which is reviewed every six months. The ICPT adjusts electricity rates based on actual changes in fuel costs. The next tariff review is scheduled for July 2025.
Subsidies for 85% of Households
The government currently provides electricity subsidies to over 85 per cent of households, ensuring that a significant majority of the population will not be affected by any potential tariff increases. This is a crucial aspect of the government’s commitment to ensuring that the cost of living remains manageable for the masses.
No Detrimental Impact on Business
Anwar emphasized that the increase in electricity tariffs will not have a detrimental impact on the business community, as the government has taken measures to mitigate the effects of any potential price hike. The government’s efforts to support small and medium-sized enterprises (SMEs) will continue to provide relief to businesses, ensuring that they can operate efficiently and effectively.
Conclusion
In conclusion, Prime Minister Anwar Ibrahim has reiterated the government’s commitment to ensuring that any increase in electricity tariffs will not burden the business community or low-income households. This is a welcome relief for the people of Malaysia, who can expect to continue enjoying affordable electricity rates. The government’s efforts to provide subsidies to 85 per cent of households and its commitment to supporting SMEs demonstrate its dedication to the well-being of the population.
Frequently Asked Questions
Q: What is the basic electricity tariff in Malaysia?
A: The basic electricity tariff in Malaysia is set by the Energy Commission under the Incentive-Based Regulation (IBR) framework and is reviewed every three years.
Q: How often is the Imbalance Cost Pass-Through (ICPT) mechanism reviewed?
A: The ICPT mechanism is reviewed every six months.
Q: What is the next tariff review scheduled for?
A: The next tariff review is scheduled for July 2025.
Q: How many households receive electricity subsidies in Malaysia?
A: Over 85 per cent of households receive electricity subsidies in Malaysia.