After the hike in fuel prices, Malaysians will be asked to further change their lifestyle as the government is adamant to increase electricity.

"We are going another round to the people to explain why TNB's (Tenaga Nasional Bhd) long awaiting tariff increase has to come.

"But we are also giving the assurance that the lower income group would not be affected," Energy, Water and Communications Minister Dr Lim Keng Yaik was quoted as saying by Bernama today.

However, the minister remained tightlipped when asked when the tariff hike was likely to be announced.

Nevertheless, he added that Tenaga would need "some time to explain to the people the problems faced by them."

Asked on the possible percentage of increase, he said: "How many percent, we have to watch and work it out."

Lim was asked on Tenaga's prospects without a tariff hike after reporting highly improved results yesterday for the second financial quarter period ending February 2006.

However, Tenaga warned that that failure to secure a tariff review will have a negative impact on the company's financial position

Debt-ridden company

Tenaga, a government linked company and the country's biggest power producer, controls two-thirds of the power generation business.

It is currently lobbying for higher power prices to counter rising operating costs. Its proposal for a tariff increase has not been approved so far and it has been asked to revise the proposal.

Meanwhile, Lim said his ministry was prepared to table the revised rates for the cabinet's approval but this had to be put on hold after the government announced the increase on fuel price.

"I was prepared to announce (the tariff increase) but once the fuel price increase (was announced), that would have been too much for the people to accept and that is why I put it off for a while," he added.

Tenaga needs a higher tariff to cover rising operating costs as it cannot generate enough cash from its business to do this. It would have to borrow more to finance its spending.

It is also seeking ways to increase sales and cut costs to reduce its debt of RM30 billion.

The last time TNB was allowed to increase its rates was in 1997 when the tariff was increased by 8.3 percent.

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