NCCIM URGES GOVT TO CONSIDER ALTERNATIVE MEASURES ON ELECTRICITY SURCHARGE HIKE

KUALA LUMPUR, Feb 8 (Bernama) -- The National Chamber of Commerce and Industry of Malaysia (NCCIM) has urged the government to consider alternative policy measures following the recent announcement of a drastic increase in the electricity tariff surcharge for medium (MV) and high voltage (HV) users. 

In a statement today, president Tan Sri Soh Thian Lai said the government could implement a phased and gradual increase in the electricity tariff surcharge as an alternative policy to allow industries and businesses to adjust and plan their operations and investments.

Additionally, he said the government should consider providing exemptions or subsidies for industries and businesses that are important for the country’s economy and social well-being such as those that create high-value jobs or contribute to environmental sustainability.

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He said the increase in electricity tariff surcharge to 20 sen/kilowatt-hour (kWh) from 3.7 sen/kWh for MV and HV users among industry participants, including multinational corporations, had a significant impact on the operating costs and competitiveness of these industries, which are critical contributors to the country’s economic growth, job creation and global competitiveness.

“Promoting energy efficiency and innovation by providing incentives and support to industries and businesses that implement best practices in energy management, technology and research and development (could also be considered),” he said.

He said that other measures would include developing alternative energy sources and solutions, such as renewable energy and energy storage, to reduce overall energy costs for industries and businesses.

Soh said more stakeholder consultations and dialogues should be held to hear the concerns and aspirations of affected industries and businesses and to find mutually beneficial and long-term solutions for the energy sector and the economy as a whole. 

“The NCCIM and its stakeholders are committed to collaborating with the government and regulators to find solutions that ensure electricity supply stability and affordability while also promoting energy efficiency, innovation and sustainability,” he added.

On Dec 16, 2022, the government announced that MV and HV users among industry participants including multinational corporations would face a surcharge at the rate of 20 sen/kilowatt-hour (kWh) for the period of Jan 1 to June 30, 2023.

-- BERNAMA