Monday, May 15, 2023

PM turns up heat: No subsidies for homes with 'excessive' power usage








PM turns up heat: No subsidies for homes with 'excessive' power usage


Households with "excessive" power consumption will no longer enjoy electricity subsidies, said Prime Minister Anwar Ibrahim.

He added that they will have to pay market rates.



Prime Minister Anwar Ibrahim


"The (electricity rate) hike is for private residences where consumption is very high, for example, one home using three fans and four air conditions (at the same time).

"They must pay the real cost of electricity and no longer enjoy subsidies,' he said at a press conference after the National Economic Action Council (NEAC) meeting in Putrajaya today.

Anwar stressed that only those with excessive power consumption will be affected, and not B40 and M40 households.

Elaborating on this, the premier said that subsidised rates for B40 and M40 households will be maintained by way of offsetting the cost onto major factories that are not involved in agriculture or SMEs.

The government has been on a push to rationalise subsidies to ensure that it is more targeted.

Towards this end, Anwar said the NEAC today discussed the creation of a central database (Pangkalan Data Utama - Padu) that is aimed at reducing leakages while making sure those who do qualify for subsidies are not left out.



The government is also making similar efforts to crackdown on leakages of diesel subsidies to the goods transportation sector through the use of "fleet cards".

Nine types of vehicles will be eligible for these subsidies including general cargo lorries, beverage delivery lorries, refrigerator trucks, box trucks and heavy-duty trucks.


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