Govt to save RM4bil following electricity subsidy review
KUALA LUMPUR: The government will save about RM4bil in subsidies for the energy sector next year following the electricity subsidy review, which can be channeled towards improving infrastructure, schools and public facilities for the people.
Announcing the review in Parliament today, Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili said the total subsidy for the energy sector this year was RM14bil.
"The increase in the electricity tariff is a reflection of the government's policy to gradually reduce subsidies, not only for the energy sector but others as well.
"This is also to reflect market prices to ensure greater efficiency in selected sectors and investors can also respond to actual pricing," he added.
He had earlier announced that the electricity and gas subsidies would be reviewed, with the electricity tariff in Peninsular Malaysia being increased by 4.99 sen/kWh or 14.89% from the current average rate of 33.54 sen/KWh to 38.53 sen/kWh.
The new rate is effective Jan 1, 2014.
However, 70.67% or 4.56 million of the 6.45 million domestic users in the Peninsular, and 62% or 260,000 of the 418,000 in Sabah and Labuan, who use electricity at the rate of 300 KWh and below, will not be affected by the review. - Bernama
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