Higher power prices seen in Q1 of 2014-Malaysian Reserve
The government plans to cut fuel subsidies for power producers in the first quarter (Q1) of 2014, in order to trim soaring subsidies for the energy sector which touched 24.8 billion ringgit ($7.79 billion) to date this year.
Electricity could rise as much as 19 percent, from 33.5 sen per kilowatt-hour to 40 sen per kilowatt-hour, if all the subsidies are removed, according to estimates.
Loo Took Gee, secretary general to the Ministry of Energy, Green Technology and Water, said the reduction in fuel subsidies for the power sector is essential to stabilise the economy.
She said the government consulted with stakeholders in the energy sector and a new power tariff rate would be announced next year.-Malaysian Reserve
NOTE: Reuters has not verified this story and does not vouch for its accuracy.
($1 = 3.1845 Malaysian ringgit)