Monday, May 30, 2011

Power rates up 7%, gas price to be floated

The federal government has raised electricity tariff by an average of 7.12 percent beginning June 1 as part of its subsidy reduction exercise.
source from

PUTRAJAYA: As part of its ongoing subsidy rationalisation exercise, the government today announced that average electricity tariffs will be raised by 2.23 sen per kilowatt hour (kWh) or 7.12 per cent to 33.54 sen kWh, from 31.31 sen kWh, effective Wednesday, June 1.

However, the move will not affect about 75 per cent of the population who mainly consume less than 300 kWh per month.

The announcement was made at a joint press conference by Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop and Minister of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui.

They said the 7.12 per cent hike was due to the increase in natural gas price to the power sector.

Read more: Power rates go up 7.1pc from June 1

KUALA LUMPUR: The gas price for the electric and non-electric sector has been increased by RM3 per mmbtu every six months from June 1 until 2015, to follow market price come 2016, said Minister in the Prime Minister's Department in charge of the Economic Planning Unit, Tan Sri Nor Mohamed Yakcop.

With the adjustment, the price will increase from RM10.70 mmbtu to RM13.70.

Nor Mohamed said the government would review the tariff every six months.

Meanwhile, the electric tariff has been raised by 2.23 sen per kilo watt or 7.12% of the current tariff, said Minister of Energy, Green TECHNOLOGY [] and Water Datuk Seri Peter Chin Fah Kui.

However, for domestic users below 300 kilo watt and below, they would not see increase in monthly bill, and the current tariff charges remained, he told reporters on Monday, May 30.

Chin also said an additional collection of 1% from users of 301 kilo watt and above would be channeled to the renewable energy fund.

The fund was to sustain the feed in tariff, he said.


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