Tenaga to implement new tariff in Sabah from July 15

KUALA LUMPUR: TENAGA NASIONAL BHD’s unit Sabah Electicity Sdn Bhd will impose the new electricity tariff structure in Sabah and the Federal Territory of Labuan with effect from July 15, 2011.

In a filing Monday, July 11, Tenaga said the new tariff structure was to promote efficient utilisation of electricity by the consumers, adding that it had minimal impact on lower income households and small businesses.

“In this restructuring also, the tariff for Federal Territory of Labuan will be realigned to mainland Sabah since Federal Territory of Labuan is supplied from the Sabah network system, and more appropriate to be subjected to Sabah’s cost of supply structure rather than that of Peninsular Malaysia,” it said.

Tenaga said 75% of domestic consumers or 275,276 households in Sabah and the Federal Territory of Labuan with consumption of 350 kiloWatt-hour (kWh) and below would not experience any increase in their monthly bills.

Meanwhile, the electricity rebate by the government for domestic consumers with monthly bill of not more than RM20 will be maintained until Dec 31, 2011, it said.

Tenaga said about 70,000 domestic consumers in Sabah and the Federal Territory of Labuan were benefitting from this rebate.

As for commercial consumers, Tenaga said low voltage commercial consumers within 1-200 kWh band (33% of Commercial consumers) will see a maximum of 3% addition or RM2 in their monthly bills.

Low voltage industrial consumers within 1-2,000 kWh band (61% of Industrial consumers) will see no impact to their electricity bills, it said.

On lighting up Sabah, Tenaga said there would be a 47% reduction in rates for public lighting maintained by local authorities from 30 sen/kWh to 16 sen/kWh to increase safety levels while allowing local governments to use more allocations for beautification, cleanliness campaigns and other services to the public.

The utility company is also introducing new peak/off-peak tariff classes for existing and new medium voltage commercial and Industrial consumers which would give potential savings to those who can shift their usage to off peak periods.

It said there would be a reduction of up 50% on consumer connection charges for new supply connections which would reduce the upfront capital cost in starting businesses, thus spurring economic growth in the state.

Tenaga said the revised charges would be implemented effective Jan 1, 2012.

It also said a 10% discount would be given to approved non-profitable welfare organisations, places of worship and government education institutions (fully or partly funded), while higher consumption will be charged higher rates to curb energy wastage, thus helping to conserve depleting resources and address climate change.

Meanwhile, Tenaga said meter rental was waived for all consumers.

Tenaga said the tariff restructuring would rationalise and rebalance the subsidy distribution in the power sector so that the targeted poor (the low income households and small businesses) will continue to be protected while subsidy to the well-off segment will be reduced.

“The gradual subsidy rationalization will also mean that more allocation can be channelled to other deserving sectors and for the development of needed infrastructure.

“The new tariff structure gives the appropriate pricing signal and is in line with the country’s objective to promote efficient and sustainable use of energy and, thus conserve depleting energy resources and address climate change,” it said.