[UPDATED] Reconsider electricity price hike, trade groups tell govt

KUALA LUMPUR – Several business associations, here, are up in arms over the sudden price hike in electricity charges by Tenaga Nasional Berhad (TNB), which was allegedly announced without any prior discussions with stakeholders or consumers.

In a joint statement today, 11 organisations appealed to the government to reconsider its decision to impose a roughly 15% increase in ICPT surcharge, equal to an increase of 1.7 cents per kilowatt-hour.

“We appeal to the government to not fuel the train of inflation further as inflationary pressures are already being experienced by all consumers, even without this unprecedented hike in electricity.

“This humongous electricity spike, together with the inflationary impact of all goods and services, will become a new pricing regime that will not retreat although supply chain disruptions are overcome,” they said.

The eleven bodies include the Building Management Association of Malaysia, Bumiputra Retailers Organisation, Industries Unite, Malaysia REIT Managers Association, Malaysia Retail Chain Association, Malaysia Retailers Association, Malaysian Association of Film Exhibitors, Malaysian Association of Theme Parks & Family Attractions, Persatuan Pemilik Restoran dan Bistro, Persatuan Pengurusan Kompleks Malaysia – Malaysia Shopping Malls Association and Real Estate and Housing Developers Association.

They further likened the increase in charges to a “death knell” for many enterprises as the economy is currently at a critical juncture, where both big and small businesses are still struggling to survive.

Besides that, they urge the government to intervene and support consumers through the temporary burden brought about by supply chain disruptions and geopolitical trade play, instead of passing it on to consumers.

Speaking to The Vibes, Malaysia Shopping Mall Association president Tan Sri Teo Chiang Kok stressed that the 1.7 cent increase is a “humongous” figure especially for outlets such as shopping malls.

“We were not consulted nor informed about the implementation of the price hike. It came as a shock to us since we only found out when news of it was announced in the media.

“The increase might seem like a small figure to some, but for shopping malls it is a humongous figure as we spend up to RM2 million a month on electricity alone. So, being able to save 15% of that amount is a lot,” he said.

He added that the previous ICPT rebate was 2 cents per kilowatt-hour, with the increase seeing a surcharge of 3.7 cents per kilowatt-hour. – The Vibes, February 8, 2022