Malaysiakini | May 27, 11
The National Economic Council (NEC) has today approved an increase in the electricity tariff but details will only be announced on Monday.
The NEC convened today in Putrajaya at a meeting involving several cabinet ministers chaired by Prime Minister Najib Abdul Razak.
Energy, Green Technology and Water Minister Peter Chin is expected to hold a press conference on Monday to deliver a formal announcement.
In recent weeks, cabinet ministers have been repeatedly telling the public to brace for an electricity tariff rise as the government embarks on a subsidy-slashing exercise.
On Wednesday, the cabinet deferred plans to hike up fuel prices, which critics argue cannot be justified unless the federal government first embarks on an austerity drive.
Over the past 18 months, the government has pushed up sugar prices by 58 percent and allowed RON97 grade petrol to hit a record high of RM2.90 per litre.
Coupled with the ‘5-in-1 hike’ on July 15 involving RON95, RON97, diesel, liquified petroleum gas and sugar prices, inflationary pressure is mounting.
Mustapa: Increase will be gradual
The withdrawal of subsidies is part of the federal established Performance Management and Delivery Unit’s (Pemandu) subsidy rationalisation plan.
According to the plan, electricity tariffs will be raised by 2.4 sen/kWh initially, followed by 1.6 sen/kWh hike every six months spread over the next five years until July 2014.
Currently, the average electricity tariff stands at 31.3 sen/kWh.
Tenaga Nasional Bhd has frozen its base tariff rate since 2009 and complains that currently the tariff covers only coal cost of up to US$85 against the prevailing coal price estimated at US$117 per tonne, reported StarBizWeek.
Meanwhile, International Trade and Industry Minister Mustapa Mohamed said that Malaysia’s industries must be prepared to face the electricity tariff hikes but stressed that it would be done gradually.
“The government needs to be financially strong. Therefore, the increase is necessary and some industries are expected to feel the pinch once it (tariff) goes up.
“The surge in power costs would, however, be done in stages. This is to enable industry players to be prepared,” Mustapa told reporters in Shah Alam, reported Star Online.
Tenaga is one of the top 10 gainers in Bursa Malaysia today. It closed at RM6.58 per share, an increase of 4 percent.
[More to follow]
#1 by Not spoon fed on Friday, 27 May 2011 - 7:48 pm
It is a good news to all of us!
#2 by Racheljansz on Friday, 27 May 2011 - 8:12 pm
Yes, very good news.
Now semua Rakyat can know how efficient the current Fed gomen is!
#3 by monsterball on Friday, 27 May 2011 - 8:19 pm
Our so call…one of the richest country in the world….blessed with so many natural resources and with a very small population are made to suffer…because UMNO B seems to kep suceeding so well..to control rural Malaysians….especially Muslim voters …with their race and religion politics.
It is actually up to true Muslims with clear strong minds to help wake up minds controlled by the Devil…to save their own race…and not use the excuse …”we are all Malaysians:….and leave the donkey job to others.
#4 by dagen on Friday, 27 May 2011 - 9:17 pm
Of course malays knew well that umno is rotten. Including the kampong folks. And they do condemn umno just like we do all the time. But what floors me is why do they during election more likely than not continue to tick umno? I think they are very sentimental. Much more sentimental than say us, chinese. I say chinese are terribly practical and realisitc.
So really umno’s grounds maybe based on the rural areas. But really those are soft grounds. Umno can sink in them anytime. Inflation, price increase of basic necessities will hurt these people badly. GST too. Umno has very little room to manouvre now. Any turn in any direction will translate to loss of votes.