Higher fuel costs from 2014 for consumers?


(TMR) – Malaysians can expect to pay higher electricity bills from early 2014 when the government is expected to implement its Fuel Cost Pass Through (FCPT) mechanism and pass on higher fuel costs directly to consumers.

According to MyPower Corp, the agency tasked with overhauling the power sector, the nuts and bolts of the FCPT mechanism is almost completed and will be ready for implementation early next year.

MyPower CEO Datuk Abdul Razak Abdul Majid said the FCPT is an important component of the government’s incentive-based regulation for the power sector and would be implemented by Tenaga Nasional Bhd(TNB) once the national power company can integrate it into its business model. “It is in the advanced stage, it is waiting for approval from the government authorities. TNB will study how it will impact its business before it is implemented.

“Many countries have adopted this FCPT formula and Malaysia has gone through this before when TNB was first privatised (in 1990),” Abdul Razak said in an interview with The Malaysian Reserve.