Government to announce electricity tariff hike

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Assalamualaikum Everyone..

Juz sharing with u this news...

Nanyang Siang Pau 19 May 2011 headlined a report quoting sources that the government will not increase the price of RON95 petrol for the time being. However a price hike for electricity is expected to be announced on May 25.

The report says the government fears a RON95 petrol price hike will prompt greater disgruntlement, therefore it may choose to increase the electricity tariff first.

The impact of an electricity tariff hike would be smaller than a hike in the RON95 petrol price, hence it is a better choice for the government, sources from the cabinet tell the newspaper.

The report also said that the government had approved the hike and had scheduled to announce it last Thursday, but it was postponed after the announcement of a sugar price hike in the same week, to avoid public anger.

However, industrial consumers are expected to face the brunt of the new electricity tariff structure, with the impact on household consumers not likely to be significant.

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