The government’s move to wean away from subsidising electricity consumption has gotten the upper echelon of consumers anxious as the removal of subsidy will mean higher electricity bills.
However, the wait is over as NRECC Minister NIk Azmi recently announced the targeted subsidy mechanism for power consumption in Peninsular Malaysia and the 10sen surcharge for the T20 category will cause some uneasiness among users.
The mechanism which will be implemented starting next month, domestic consumers with high electricity consumption exceeding 1,500 kWh, or equivalent to a minimum electricity bill of RM708 per month, will be charged a surcharge at a rate of 10 sen/kWh.
With the new mechanism, an estimated 83,000 consumers or one percent of domestic users will experience a hike of RM187 or 25 percent in their monthly electricity bills, he added.
However, the government will still bear a subsidy of RM58 million specifically for this category. The hike in surcharge comes close to what non-domestic users will pay like industries and businesses which is 17 sen.
Questions are being raised on the quantum as the percentage is close to what large companies are paying yet domestic users will also be paying close to these corporations. A larger disparity is needed to distinguish domestic and non-domestic if the government is to move ahead with the removal of subsidies for all other aspects in the future.
