ID :
71708
Thu, 07/23/2009 - 11:17
Auther :
Shortlink :
https://oananews.org//node/71708
The shortlink copeid
CABINET YET TO DECIDE ON NEW POWER TARIFFS
PUTRAJAYA, July 23 (Bernama) -- The Cabinet has yet to decide on the new electricity tariffs, Prime Minister Najib Razak said Wednesday.
Nevertheless, the new tariffs would be studied in depth following the
increase in gas prices, he told reporters at the Prime Minister's Department
here.
"No decision was made Wednesday, so everything still status quo," he said.
The Energy, Green Technology and Water Ministry said in a statement that the
present electricity tariffs stay until year end.
"This morning, the Cabinet had discussed the proposal by the Economic
Planning Unit to review the gas price for the electricity sector in Peninsular
Malaysia.
"After careful deliberation and taking into account the current economic
scenario, the government had decided that the existing gas price of
RM10.70/MMBtu be retained.
"In line with this decision, the average electricity rate will be retained
at 31.31 sen/kWh until the end of year 2009," it said.
Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said
last Friday that a working paper on the proposed increase in electricity tariffs
would be tabled to the Cabinet Wednesday, and if approved it would be
implemented next month.
The tariff hike, which would involve consumers nationwide including
commercial premises, had already been approved by the National Economic Council,
he had said.
Tenaga Nasional Berhad president and chief executive officer Datuk Seri Che
Khalib Mohamad Noh was reported to have said a day later that the electricity
tariff increase would only be implemented if the government raised gas prices.
The tariff increase was intended to cover higher operating costs as a result
of the rise in fuel prices, he had said.
Najib who is Finance Minister said the rising gas prices forced Petronas to
bear huge amounts of subsidy annually.
The allocation used by the national petroleum company to cover the subsidies
should have been channelled to the government to finance various projects and
meet people's needs, he said.
"The price of gas is rising and Petronas has to fork out RM6.4 billion each
year. The money can be channelled to the government to be spent on various
projects and for the people but it has to be used for various subsidies," he
said.
-- BERNAMA
Nevertheless, the new tariffs would be studied in depth following the
increase in gas prices, he told reporters at the Prime Minister's Department
here.
"No decision was made Wednesday, so everything still status quo," he said.
The Energy, Green Technology and Water Ministry said in a statement that the
present electricity tariffs stay until year end.
"This morning, the Cabinet had discussed the proposal by the Economic
Planning Unit to review the gas price for the electricity sector in Peninsular
Malaysia.
"After careful deliberation and taking into account the current economic
scenario, the government had decided that the existing gas price of
RM10.70/MMBtu be retained.
"In line with this decision, the average electricity rate will be retained
at 31.31 sen/kWh until the end of year 2009," it said.
Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said
last Friday that a working paper on the proposed increase in electricity tariffs
would be tabled to the Cabinet Wednesday, and if approved it would be
implemented next month.
The tariff hike, which would involve consumers nationwide including
commercial premises, had already been approved by the National Economic Council,
he had said.
Tenaga Nasional Berhad president and chief executive officer Datuk Seri Che
Khalib Mohamad Noh was reported to have said a day later that the electricity
tariff increase would only be implemented if the government raised gas prices.
The tariff increase was intended to cover higher operating costs as a result
of the rise in fuel prices, he had said.
Najib who is Finance Minister said the rising gas prices forced Petronas to
bear huge amounts of subsidy annually.
The allocation used by the national petroleum company to cover the subsidies
should have been channelled to the government to finance various projects and
meet people's needs, he said.
"The price of gas is rising and Petronas has to fork out RM6.4 billion each
year. The money can be channelled to the government to be spent on various
projects and for the people but it has to be used for various subsidies," he
said.
-- BERNAMA
