The Malaysian Retailers Association (MRA) recently slammed Tenaga Nasional Berhad’s (TNB) proposal to increase electricity tariffs by mid-2025, describing the move as “irrational” given that TNB’s net profit has hit RM1 billion in the past few quarters.
MRA president Andrew Lim urged TNB to use the profits to cover its operating and maintenance costs, rather than burdening consumers and businesses.
The new tariff of 45.62 sen/kWh, announced on December 26, is a 14% increase from the current tariff of 39.95 sen/kWh under RP3.
The proposal also drew the attention of Prime Minister Dato’ Seri Anwar Ibrahim, who stressed that the increase would not be approved without a thorough study.
Energy Transition and Water Transformation Minister Datuk Seri Fadillah Yusof, meanwhile, stated that a final decision had not yet been made.
At the same time, traders voiced their concerns, as the tariff hike will burden businesses that are already struggling with the minimum wage hike, service tax and compliance costs in 2024.
The effects of the tariff hike are also expected to increase inflation, reduce consumer purchasing power, and weaken the competitiveness of the country's economy.
Lim called for an immediate dialogue with all stakeholders to find a more balanced solution.
With the huge profits recorded by TNB, should the burden of costs be passed on to the people? Or is it time for big companies to shoulder greater responsibility for the stability of the country's economy?
