As predicted, the government today announced a hike in the electricity tariff in peninsular Malaysia starting next year of 15 percent, or 4.99 sen per kilowatt, bringing the new cost to 38.53 sen.

NONEEnergy, Green Technology and Water Minister Maximus Ongkili (right in photo) announced this in a press conference in Parliament today.

Previously, the tariff was 33.54 sen per kilowatt.

Meanwhile, Sabah and Labuan see an increase of 5 sen or 16.9 percent, from the current rate of 29.52 sen per kilowatt to 34.52 sen per kilowatt.

All increases will take effect on Jan 1.

Earlier, Tenaga Nasional Bhd (TNB) had asked for a suspension on the trading of its shares this afternoon pending the company's "material announcement" this afternoon.

With Ongkili warning last Wednesday that a 10 to 20 percent electricity tariff hike was on the cards for next year, the confirmation today comes as no surprise.

Subsidy for domestic consumers

During the press conference today, Ongkili said the government will continue to provide subsidy to domestic users in the peninsula, Sabah and Labuan, for consumption of below 300 kilowatts.

To protect the welfare of domestic users, especially the lower-income group, the minister said the government decided not to increase electricity tariff to the 70.67 percent, or 4.56 million users of the 6.45 million consumers in peninsular Malaysia.

Meanwhile, up to 62 percent or 260,000 consumers in Sabah and Labuan, consume less than 300 kilowatts of electricity.

“The government will continue to give rebates to consumers whose electricity bill is RM20 or less, up to Dec 31, 2014.

“On the whole, following the implementation of the new tariff, the government still has to bear the subsidy for all electricity consumers in Peninsular Malaysia, through the release of natural gas revenue of up to RM14 billion per year, of which RM2.4 billion a year is specifically for domestic consumers using 300 kilowatts and under a month.

“Meanwhile in Sabah and Labuan, this figure is RM570 million a year, of which RM155 million a year is for the same category of consumers,” he said.

With the electricity tariff revision in Sabah and Labuan, Ongkili added that the government has agreed to allocate financial aid of RM1.812 billion in the form of grants.

He said the money is to carry out critical projects to strengthen new infrastructure, including the Southern Link transmission line project, or other communications projects between 2014 to 2016.

“Aside from that aid, the government has before this also allocated financial aid of RM230.6 million, from 2013 to 2014, to fund projects to reduce the System Average Interruption Duration Index (SAIDI) throughout Sabah,” he said.

NONE