Cut in power surcharge can reduce prices of goods, says PM

Domestic power rates remain unchanged but a surcharge on commercial and industrial users has been reduced.

PETALING JAYA: The government’s decision to reduce the electricity surcharge on commercial and industrial users is expected to lower the prices of goods, says Prime Minister Anwar Ibrahim.

Anwar said Putrajaya had agreed to lower the surcharge, from 17 sen/kWh to 16 sen for the second half of the year, to help reduce the prices of various goods.

“We will monitor whether this reduction in electricity rates will lead to a decrease in the prices of goods,” he said, according to Bernama.

The Federation of Malaysian Manufacturers said earlier today that the surcharge reduction of one sen/kWh was minimal and expected, given that coal prices have stabilised over the past year.

It sought greater transparency about how the government calculated the surcharge and called for small and medium-sized manufacturers to be entitled to a lower surcharge.

FMM suggested a rate similar to that on companies in water services, which will be reduced to 2.7 sen/kWh from 3.7 sen.