TNB's proposed tariff increase sparks concern from consumer advocates

KOTA KINABALU: A consumer group is concerned about plans to increase the electricity tariff by Tenaga Nasional Berhad (TNB) next year.

National Consumer Foundation Sabah chairman David Chan said that electricity tariffs in Malaysia are generally regulated by the Energy Commission and monitored by the Energy Transition and Water Transformation Ministry.

He added that any proposed tariff adjustment typically requires Cabinet approval.

“However, through the imbalance cost pass-through (ICPT) mechanism, periodic adjustments can be made without direct Cabinet approval based on changes in fuel costs and electricity generation.

“If there are concerns that TNB is making price adjustments without proper Cabinet oversight, this may require further investigation or public consultation to ensure compliance with regulations,” said Chan, in a statement on Saturday (Dec 28).

TNB had on Friday (Dec 27) said electricity tariff rates and tariff structure under the regulatory period 2025-2027 (RP4) would be decided by the government by mid-2025, with current rates and tariff structure set to hold till then in Peninsular Malaysia.

The power utility’s officials said the power utility base tariff rate moving into the RP4 period would rise by 14% to 45.62 sen per kilowatt hour, underpinned by a forecast 24% rise in coal price and 34% rise in liquified natural gas (LNG) price over the three years.

“The revised tariff rate set by the government next year could be higher or lower after considering various factors and information by the government,” said TNB chief financial officer Datuk Nazmi Othman, during an event in Kuala Lumpur.

“The government wants to protect consumers, and the electricity tariff rate for about 85% of households will likely remain unchanged over the RP4 period,” he added.