240,000 domestic consumers to benefit from electricity tariffs reduction

KUCHING, Nov 19, 2014: Some 240,000 domestic electricity consumers in Sarawak will get to benefit from the reduction in electricity tariffs, effective Jan 1 next year.

In announcing the downward revision, Chief Minister Adenan Satem said the state government can afford to reduce the tariffs.

"It has nothing to do with the petition called by the Sarawak DAP," he said, adding:"We do the right thing (to reduce the tariffs)."

"We are able to do it because we have sound financial management, not because of the call by the Opposition," he added.

Another reason, he said, is because Sarawak Energy Berhad (SEB) is able to reduce power theft by more than half since 2010.

"Power theft was causing SEB to lose hundreds of millions a year," he added.

"By avoiding the cost of generating power that was being stolen, SEB has greater financial capacity to reduce the tariffs.

"This outcome validates the government's strong determination to attack power theft and stand up for the 90% or more of consumers who have never been involved in power theft," he said, adding that most of the power theft cases were from central Sarawak.

In announcing the reduction in his winding up speech in the State Assembly, he added:"For this purpose, the state government has carefully designed the tariff revision to provide the greatest assistance to low income customers.

"As a result, almost 60,000 customers will join the 70,000 that are already eligible for the federal government's RM20 subsidy.

"That means some 130,000 low income customers in Sarawak will receive a zero monthly bill," he said.

"For the 50,000 customers that are not eligible for the federal government subsidy and are consuming up to 150 units per month, the tariff will be reduced by more than 40%.

"Furthermore, the 50,000 customers consuming between 150 and 200 units will get a reduction in tariff of 30%," he said.

Adenan said that the 80,000 customers presently consuming between 200 and 300 units per month will get a reduction in tariff of just below 20%.

The 50,000 consumers presently consuming 300 and 400 units per month will benefit from a reduction of around 10%, he said.

"The final 125,000 customers with the largest monthly consumption of more than 400 units will get a reduction of between 2% and 4%," he said adding that 240,00 customers or close to 50% of SEB's customers will benefit from a tariff reduction of between 20% and more than 40%."