ID :
29591
Tue, 11/11/2008 - 16:02
Auther :
Shortlink :
https://oananews.org//node/29591
The shortlink copeid
M'SIA MAY REDUCE ELECTRICITY TARIFF IF THE COAL PRICE FALLS
KUALA LUMPUR, Nov 11 (Bernama) -- The Malaysian government will consider reducing the electricity tariff, if the market price of coal falls to below US$75 per tonne for three consecutive months, said the Energy, Water and Communications Minister, Shaziman Abu Mansor.
"It does not matter when.If the coal price falls to below US$75 per
ton for
three consecutive months, I will ask the Energy Commission to review the
possibility of reducing the electricity tariff," he said.
"But to date and over the past five months, the coal price has continued to
increase," he said when asked if the government would reduce the electricity
tariff following the fall in the oil price.
Shaziman was speaking after officiating the National Campaign for
Electricty
Efficiency here Monday.
The electricity tariff was raised by 26 percent in July based on the coal
price of US$75 per tonne.
The coal price which contributes to 60 percent of the operational costs of
Tenaga Nasional (TNB) has increased to between US$100 and US$120 per
tonne.
Shaziman said that the fall in oil price to as low as US$63 a barrel had no
connection to the electricity supply in the country as power-generating stations
used gas, coal, hydro and other sources.
About 60 percent of the power generation plants used gas and 30 percent
coal.But from the cost point of view for TNB,coal contributed 60 percent and gas
40 percent.
"We need to also consider the price of natural gas and other sources of
power generation such as hydro, before deciding on the electricity tariff,"
Shaziman said.
TNB president and chief executive officer Che Khalib Mohamad Noh
in the meantime said that the agency would reduce the electricty tariff if asked
to do so by the government.
"If the coal price falls below the US$75 per ton level, we too would have
no
problem reducing the tariff to avoid maintaining it at the current high level,"
he said.
Under the new tariff, effective from July,the tariff for domestic users
was
set at 21.8 sen per kilowatt-hour (KWh) for usage of the first 200kWh a month
and 34.5 sen for the subsequent unit.
"It does not matter when.If the coal price falls to below US$75 per
ton for
three consecutive months, I will ask the Energy Commission to review the
possibility of reducing the electricity tariff," he said.
"But to date and over the past five months, the coal price has continued to
increase," he said when asked if the government would reduce the electricity
tariff following the fall in the oil price.
Shaziman was speaking after officiating the National Campaign for
Electricty
Efficiency here Monday.
The electricity tariff was raised by 26 percent in July based on the coal
price of US$75 per tonne.
The coal price which contributes to 60 percent of the operational costs of
Tenaga Nasional (TNB) has increased to between US$100 and US$120 per
tonne.
Shaziman said that the fall in oil price to as low as US$63 a barrel had no
connection to the electricity supply in the country as power-generating stations
used gas, coal, hydro and other sources.
About 60 percent of the power generation plants used gas and 30 percent
coal.But from the cost point of view for TNB,coal contributed 60 percent and gas
40 percent.
"We need to also consider the price of natural gas and other sources of
power generation such as hydro, before deciding on the electricity tariff,"
Shaziman said.
TNB president and chief executive officer Che Khalib Mohamad Noh
in the meantime said that the agency would reduce the electricty tariff if asked
to do so by the government.
"If the coal price falls below the US$75 per ton level, we too would have
no
problem reducing the tariff to avoid maintaining it at the current high level,"
he said.
Under the new tariff, effective from July,the tariff for domestic users
was
set at 21.8 sen per kilowatt-hour (KWh) for usage of the first 200kWh a month
and 34.5 sen for the subsequent unit.
