The news on new electricity tariff has caught everyone dumbfounded recently. The average electricity tariff will be increased by 7.12% due to revision of gas prices for power sector.
However, those households that use 300kWh or less of electricity per month will not be affected by this high tariff rate. Meanwhile, our government will also continue to provide rebate to domestic consumers whose monthly electricity bills amount to RM20 or less until end of this year.
The increase in power tariff is also part of a plan to cut government subsidies. We have been assured that the effect of the power tariff hike on inflation would not be significant. But, we must always remind that it will trigger some increase in the cost of living although the impact is expected to be less than that from an increase in fuel prices.