MCA man urges higher electricity bill protection threshold

MCA vice-president Lawrence Low has called for an increase in the electricity bill protection threshold, suggesting it should be raised to 1,200 kWh per month. The current threshold is 800 kWh, which the government recently increased from 600 kWh. Low emphasized that while raising the threshold offers immediate relief to households, it is crucial to implement a progressive mechanism to prevent sudden spikes in electricity bills once consumption surpasses the threshold.

He argued that relief measures should taper off gradually as consumption rises, allowing households to maintain normal usage while improving energy efficiency. Low stressed that maintaining manageable electricity costs does not advocate for wasteful consumption. By keeping costs affordable, households can allocate more disposable income towards purchasing energy-efficient appliances, such as air conditioners, refrigerators, washing machines, computers, and electric vehicles.

This, in turn, benefits various sectors including electrical, electronics, retail, repair services, and related industries. Prime Minister Anwar Ibrahim recently announced the increase in the electricity bill protection threshold from 600kWh to 800kWh per month until the end of the year. This decision aims to provide relief to domestic consumers facing higher electricity consumption due to factors like the haze and hot weather, which pushed usage above the previous threshold of 600kWh.

Low urged the government to review the 8% sales and service tax (SST) on household electricity and lower it to 6% or lower. He also called for a review of the current Regulatory Period 4 (RP4) base tariff of 45.40 sen/kWh and consider reducing it to the 39.95 sen/kWh rate from the previous Regulatory Period 3 (RP3).