THE MCA said Tenaga Nasional Berhad (TNB) must provide a clear explanation of why electricity tariffs are being readjusted.
According to TNB, the main reason for this proposed tariff adjustment, under Regulatory Period 4 (RP4) of the Incentive-Based Regulation (“IBR”) framework from 1 January 2025 to 31 December 2027, is to ‘rebase’ the rates to reflect higher estimated fuel costs.
"However, Singapore's Energy Group and City Energy announced that, due to the drop in international energy prices, household electricity tariffs would be reduced by 3.4% in the first quarter of 2025, marking the lowest price since the third quarter of 2023.
Malaysia and Singapore are separated by only a narrow strait. Hence, why does TNB insist that rising international energy prices require tariff increases, while Singapore can lower its rates due to falling energy prices?," asked MCA vice-president Datuk Seri Dr Wee Jeck Seng.
He said an increase in electricity prices will significantly affect both the public and businesses in Malaysia, particularly as the economy recovers.
"Any additional cost burden could place further strain on small and medium-sized enterprises (SMEs) and impact the job market.
Moreover, higher tariffs directly raise living costs for ordinary households, forcing low-income groups to reduce daily spending even further," he stressed.
The Tanjung Piai MP said recently, that there have been numerous concerns from business owners who are worried that the rise in electricity tariffs will weaken their competitiveness and affect their pricing compared to international markets.
At the same time, many families have expressed concern about rising electricity costs, already burdened by inflation. These voices must be taken seriously by both TNB and the government, he said.
He said the cost and tariff adjustment mechanisms of TNB must be transparent, so the public can fully understand the reasons behind the changes and avoid further uncertainty.
"Authorities must also reassess the reasonableness of fuel cost forecasts and consider practices in other countries to ensure the tariff adjustments are fair and justified.
"In today’s world, electricity is the lifeblood of economic development, and both the government and TNB must work together to find the best solution that balances the interests of businesses with the well-being of the public, rather than simply passing the cost burden onto consumers," added Wee. - January 3, 2025
