Cabinet to meet on electricity tariff

Posted on May 24, 2011. Filed under: Energy |

-The Star-

By LEONG HUNG YEE
hungyee@thestar.com.my

SEPANG: Energy, Green Technology and Water Minister Datuk Seri Peter Chin has declined to comment on speculations of a hike in electricity tariff.

He also said that the ministry had yet to submit any papers for the RM6.5bil proposal to take over Selangor state water-related bonds.

“When? I am not confirming anything. Wait … until the cabinet meets this Wednesday,” Chin said, when asked on the possibility of a hike in tariff during his visit to a water treatment plant site at Sungai Labu, Selangor, yesterday.

Chin says he is not confirming speculations of a hike in electricity tariff

Nanyang Siang Pau had quoted sources as saying that the Government would not increase the price of RON95 petrol for the time being. However, a price hike for electricity was expected this week, the daily said.

Last week, StarBiz, quoting sources, reported that Tenaga Nasional Bhd (TNB) could be allowed to impose a “single-digit” percentage tariff hike this week. “It will not be a double-digit hike but close to that,” sources had said, adding that some 56% of the population would not be affected by the hike.

OSK Research expected a 5% to 10% tariff hike for TNB, as the increase was long overdue, given the rising cost of coal and other raw materials. The tariff has been unchanged since March 2009.

Sources also said TNB was expected to make an announcement on Thursday on the matter.

Meanwhile, it was reported last week that the Federal Government was expected to make a RM6.5bil offer to buy over the Selangor water debts from bondholders.

The unconfirmed offer, which was supposed to come from the federal government and its unit Pengurusan Aset Air Bhd (PAAB), is at a RM200mil discount to the value of the water bonds of RM6.7bil.

Chin said it would be up to the cabinet to decide on the takeover. However, he said the ministry had yet to submit any papers for the proposal.

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