Reinvest Your Profits To Cover Operational Costs Tnb Told

On Dec 26, TNB said it had proposed a base tariff of 45.62 sen per kilowatt-hour (kWh) for implementation, starting July 1, 2025, up from the previous base tariff of 39.95 sen/kWh.
PETALING JAYA: A retailer association has questioned Tenaga Nasional Bhd’s (TNB) plans to increase power tariffs despite reporting net profits exceeding RM1 billion in the last two quarters of this year.
The Malaysia Retailers Association (MRA) said the national utility company should reinvest portions of its profits to cover its operational and maintenance costs, instead of passing the costs onto the Malaysian public and consumers.
In a statement, MRA president Lim Tatt Keong said the proposed 14.2% power tariff hike — scheduled to take effect on July 1 — would significantly increase operational costs for retailers.
The hike would also impose severe challenges for both businesses and consumers.
“Escalating operational costs in 2025 are already causing retailers and businesses to struggle with significant financial pressures.”
On Dec 26, TNB said it had proposed a base tariff of 45.62 sen per kilowatt-hour (kWh) for implementation, starting July 1, 2025.
The previous base tariff was set at 39.95 sen/kWh between 2022 and 2024.
Lim said the increase in electricity tariffs would further add to the higher operational costs for businesses, which had already increased due to various factors.
Among them were a higher minimum wage to be enforced in February; increased payroll costs due to mandatory EPF contributions for foreign workers and higher service tax rates; and costs arising from the implementation of e-invoicing.
“These rising costs will inevitably lead to higher operational expenses for businesses, which may result in these costs being passed on to consumers.
“The retail industry fears this will exacerbate inflation, reduce consumer spending, and threaten Malaysia’s competitiveness and economic recovery.”
Earlier today, the Malaysian Iron and Steel Industry Federation expressed concern about the planned increase in the base electricity tariff as it would place additional strain on the sector, which had been grappling with substantial losses amounting to billions of ringgit over the past three years. - FMT

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