Energy, Water and Communications Minister Lim Keng Yaik today ruled out an immediate electricity tariff hike saying this was in order not to burden Malaysian consumers facing rising inflation from high global prices.

"There's no increase for the time being. I wouldn't even say (there will be one) at the end of the year [...] don't speculate on when tariffs will be increased," Lim told reporters in Putrajaya today.

The government has been under pressure to allow energy prices to rise as national utility giant Tenaga Nasional has operated under difficult conditions since the 1997 Asian financial crisis which increased its borrowing costs.

Lim said the ministry was in a dilemma as it had to juggle consumer concerns and demands from Tenaga, as well as Petronas, the national oil and gas company which supplies gas at subsidised rates to power Tenaga's generators.

Petronas is also seeking a review of its gas charges because it often has to pay more for its own supply than what it gets in return, he said.

However, allowing Petronas to raise its tariffs would further complicate Tenaga's problems, Lim (right) said, adding that he was delaying a review of gas prices.

The review was originally due this year. Tenaga Nasional reported a 57.3 percent increase in its net profit for the year to August on the back of increased sales and foreign exchange gains. - AFP