Monday, May 23, 2011

Cabinet to decide on Wednesday on tariff increase for TNB

KUALA LUMPUR: The Cabinet is expected to decide on Wednesday, May 25 if there should be a tariff increase for TENAGA NASIONAL BHD [].

Minister of Energy, Green TECHNOLOGY [] and Water, Datuk Peter Chin Fah Kui said on Monday, May 23 it would be up to the Cabinet to decide at its weekly meeting.

He was responding to questions from the media on speculation about an impending hike in the tariffs for TNB.

Last week, OSK Research said for TNB, there could be a small hike in electricity tariff as it needed a 1% hike to cover the Renewable Energy.

The research house said for renewable energy to be viable, the government needed to pass the proposed Renewable Energy Act (RE Act) that includes a feed-in tariff (FiT) scheme of 1% tariff hike.

'The RE Act is expected to be passed by mid-2011. The 1% tariff hike to cover the costs associated with the FiT scheme is expected to have a very minimal impact to electricity demand. FIT. So a 3-5% hike is not out of the question,' it said.

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