May 30, 2011 18:06 PM
PUTRAJAYA, May 30 (Bernama) -- As part of its ongoing subsidy rationalisation exercise, the government Monday announced that average electricity tariffs will be raised by 2.23 sen kilowatt per 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.
As a result, Tenaga Nasional's average tariff had to be reviewed upwards by two per cent or 0.63 sen kWh.
"The review will enable the utility company to increase its investment in better electricity infrastructure including supply and distribution," he said, adding that it would invest about RM4.5 billion, annually.
Chin also said in line with the government's effort to rationalise energy prices in accordance with global market mechanism, the government has agreed to use the fuel-cost-pass formula to determine future tariff prices.
To encourage the use of electricity generated from renewable energy, the government has also decided to impose an additional one per cent feed-in-tariff portion which will be channeled, to the RE Fund, to promote the purchase.
-- BERNAMA
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.
As a result, Tenaga Nasional's average tariff had to be reviewed upwards by two per cent or 0.63 sen kWh.
"The review will enable the utility company to increase its investment in better electricity infrastructure including supply and distribution," he said, adding that it would invest about RM4.5 billion, annually.
Chin also said in line with the government's effort to rationalise energy prices in accordance with global market mechanism, the government has agreed to use the fuel-cost-pass formula to determine future tariff prices.
To encourage the use of electricity generated from renewable energy, the government has also decided to impose an additional one per cent feed-in-tariff portion which will be channeled, to the RE Fund, to promote the purchase.
-- BERNAMA
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