KUALA LUMPUR: The electricity tariff increase will only be implemented if the gas price is raised by the government, Tenaga Nasional Bhd (TNB)’s president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said yesterday.
He said the tariff increase was intended to cover higher operating costs as a result of the rise in fuel prices.
“For TNB, when the gas price goes up, we need to make adjustments to the tariffs,” he told reporters at TNB Family Day gathering at headquarters level here yesterday.
Che Khalib said that when fuel prices come down, the electricity tariffs are also adjusted accordingly.
“The gas price is determined by the government and if it is raised, then we need to adjust our tariffs to take into account of that,” he said when asked on the possibility of a tariff increase if the gas price is raised.
Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said recently that the National Economic Advisory Council has made a decision on the revision of electricity tariffs in line with the fuel price movements.
He said that any electricity tariff increase would not affect the lower income group as the government had reduced the rates by an average of 3.7 percent to 31.31 sen per kilowatt hour from 32.5 sen, effective March 1, 2009.
Che Khalib said the current fuel prices were higher when compared to that at the beginning of this year.
“The decision to look into the gas price, whether to increase or not, is up to the government. The gas price in Malaysia is not the market price,” he said, adding that with the various subsidies given, the gas price was much lower than the market price.
“If we are to pay the market price, then the gas price and electricity tariffs will be much higher than what we are enjoying now,” he added.
On the Bakun hydroelectric power project, Che Khalib said companies interested to participate in undersea cable portion could submit their tenders early next year.
“Those who qualify or are capable can tender for it early next year under the open tender process,” he said, adding that the process to evaluate the tenders usually requires about six months.
The transmission cable and undersea cable project is reported to be worth between RM8 billion and 10 billion, involving a 730-kilometre high-voltage direct transmission line and 670-kilometre undersea cable for the Bakun dam.
