By: Datuk Seri Panglima Wilfred Madius Tangau
This minimal increase, as shown in the attached schedule, suggests that the agreed-upon adjustments were not fully implemented. According to the original agreement, we should currently be selling electricity at an estimated tariff of 47 sen per kWh. Subsidies, by their nature, are designed to provide immediate financial relief. Nevertheless, they can create a false sense of stability, leading to delayed necessary tariff adjustments and masking the actual costs involved in electricity generation and distribution.
In an effort to address these challenges, ECoS has recently announced an adjustment under the Imbalance Cost Pass-Through mechanism for the period from July 1 to December 31, 2024. Through this, the Federal Government has targeted a subsidy containment requirement of RM97.77 million to minimize the impact of the ICPT surcharge during this implementation period.