MOF maintain electricity tariff for all consumers in the second half of 2022

According to the Ministry of Finance (MOF), the government will maintain its electricity tariffs for all consumers in the second half of 2022, although the electricity costs have climbed.

The government is paying a sum of RM5.8 billion to Tenaga Nasional Berhad (TNB) under the Incentive Based Regulation (IBR) scheme. Through this incentive, Keluarga Malaysia will not be affected by the sudden increase in fuel prices for electricity generation.

Price surges in electricity generation also has increased TNB’s working capital requirements, per the statement said.

As reported, coal prices cost around RM 357 (US$80) per tonne in early 2021. However, by the middle of 2022, it surpassed RM 177 (US$400) per tonne.

"In this regard, the Government will also guarantee TNB's financing of up to RM6 billion to ensure that TNB's electricity supply generation operation will not be interrupted for the benefit of Keluarga Malaysia, in addition to catalysing the sustainability of the country's energy industry," it said.

Sources: BERNAMA