KUALA LUMPUR (Sept 18): Tenaga Nasional Bhd (KL:TENAGA) will absorb the impact from the electricity tariff fuel surcharge exemption that has been expanded to more households up until the end of this year.
The exemption from automatic fuel adjustment, retail charges of RM10 per month, and sales-and-services tax carry an estimated savings of RM150 million for eligible households, Datuk Shamsul Ahmad, chief executive of the national electric utility, said at a briefing on Friday.
The number of households using more power has risen in recent months, he said while stressing that the company does not benefit from the surcharge.
"But all of us has got a role to play in managing our consumption," he said.
On Thursday, the government announced that households consuming 800 kilowatt-hour of power or less monthly will now be spared from the surcharge under the automatic fuel adjustment as part of a move to address the rising cost of living.
The exemption is previously provided only to those using under 600 kilowatt-hour each month. The Energy Commission had in April warned of the surcharge due to the rising prices of coal and natural gas following the Middle East conflict.
Jump in electricity bill
The proportion of households that incurred the three additional charges rose to 20% in July from 13% in January under the previous threshold.
Apart from warmer weather, work-from-home arrangements due to the Iran oil price shock and the 2026 World Cup in June-July have also resulted in higher electricity consumption, according to Tenaga Nasional.
By raising the threshold, 90% of its residential customers will be protected from having to pay the extra billing components, chief regulatory and stakeholder management officer Shahannom Izham said at the same briefing.
A consumer who uses 700 kilowatt-hour will pay RM40 less in the final electricity bill under the latest measure, she added.
Tenaga Nasional is warning that fuel cost could climbed further due to the prolonged Middle East conflict and upcoming winter season that will raise prices of coal, raising the automatic fuel adjustment surcharge above five sen per kilowatt-hour in December.
Tenaga Nasional is warning that fuel cost could climbed further due to the prolonged Middle East conflict and upcoming winter season that will raise prices of coal, raising the automatic fuel adjustment surcharge per kilowatt-hour above five sen in December from 3.67 sen this month.
Prices of coal, which makes up 60% of Peninsular Malaysia's power generation, is expected to come in at US$120 per tonne in December, Shamsul noted.
Newcastle coal futures, the international benchmark for thermal coal used by power plants, is now trading at around US$145 per tonne.