FMM appeals for more gradual electricity tariff surcharge increase

KUALA LUMPUR: The increase in electricity tariff surcharge by more than 44% for medium voltage (MV) and high voltage (HV) users will pose major concerns and challenges to this category of users for the next six months, said the .

Its president Tan Sri Soh Thian Lai said the federation is greatly concerned with the significant rate of increase in the surcharge and would like to appeal to the government for a more gradual and tenable surcharge rate, to ease some of the cost burdens on these industrial users during this period of prolonged uncertainty.

“This request takes into consideration that the MV and HV industrial users comprising medium and large sized local and multinational companies (MNCs) are equally affected by the challenging high operating costs, given the high inflationary pressures and impact of the increase in minimum wage, labour shortages, rise in transportation costs, global supply chain disruption, and the weakening of the ringgit.

“It is important to note that these companies have contributed tremendously to the Malaysian economy in terms of significant investments and gross domestic product contributions, and are the largest employers,” he said in a statement on Sunday (Dec 18)

On Friday (Dec 16), the government announced that MV and HV users including MNCs will be charged a surcharge of 20 sen per kWh for the period of Jan 1 to June 30, 2023.

Source : The Edge Markets

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