Electricity subsidies to T20 consumers must be reviewed

KUALA LUMPUR - Subsidies for electricity tariffs for T20 consumers will need to be reviewed in the future.

According to Natural Resources, Environment and Climate Minister Nik Nazmi Nik Ahmad the T20 group should pay a more competitive tariff rate.

Nazmi said the targeted subsidies in electricity tariffs must be implemented to ensure only certain groups benefit.

"We have imbalanced cost pass-through (ICPT) framework to set the electricity price tariff. We still maintain the same rate for domestic consumers even for the T20 group.

"That matter to me must be reconsidered in the future because when it comes to T20 they earn more and thus they should be paying more competitive rates.

"However, I agree we must protect the M40 and B40 groups," he said in the winding up debate on the motion of thanks on the royal address at the Dewan Rakyat.

Nazmi added the country could not continue with corporate subsidies.

"In our economy, corporates gain bigger profits compared to the salary rates given and one of the factors is the corporate subsidies we provide.

"We must switch to targeted subsidies that benefit the people directly," he said.