When the raise of electrity tariff is imminent …

Yesterday, the status was "coming soon".

Today, Energy, Water and Communications Minister Lim Keng Yaik said Tenaga Nasional Bhd (TNB) will be allowed to raise electricity rates "very soon", noting that the last tariff rise was in May 1997, nearly 9 years ago.

Previously, TNB has warned a tariff increase is vital to ensure its financial future.

In March, the government rejected TNB’s request for an increase of 10% as it had just raised petrol pump prices. Tenaga has been lobbying for higher tariffs for the past ten years to help offset rising fuel prices, but the government is reluctant to raise rates when inflation is running at a seven-year high.

Under TNB’s revised proposal to the Government, users will be charged the new rates only if their monthly bills exceed RM33, which means that 45 per cent of TNB’s 6.2 million domestic, mostly low-to-middle’s income, users will be unaffected. The new proposal is a marked improvement over TNB’s previous one, in which the cut-off point was RM22.

Analysts have predicted an increase of 5-10 per cents by TNB, adding it may occur on staggered basis, backing a rise in the power producer’s tariff given increased fuel costs and higher capacity payment.

Some are ready to embrace the hike, while some are waiting for a chance to shoot under the hip. Whichever it is, I believe the raise is quite reasonable, given that the welfare of needy groups are being considered and Tenaga has to pay market price for coal, together with additional RM1bil next year to Independent Power Distributors (IPPs).

It’s time to save electricity usage or else, be ready to fork out more. Fair enough.

However for now, do remember to pay up your electricity bill.

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