Transition to targeted subsidy for electricity users no longer an option

PUTRAJAYA - The government has started the transition to targeted subsidies by reducing subsidies for non-domestic medium and high voltage electricity users as the blanket rebate is inefficient and unsustainable, said Natural Resources, Environment and Climate Change Minister Nik Nazmi Nik Ahmad.

"We get a lot of criticism from the industry, but this transition is no longer an option," said the minister in his new year address to the ministry staff here today.

He said the government also needed to ensure the high reliability of the national electricity supply system, as well as would not have a negative impact on the environment, while at the same time maintaining a tariff rate that all residents in Malaysia could afford.

The government, he said, had also set a target to increase the generation of electricity from renewable energy (RE).

As such, he called for the ministry staff to facilitate industry participation, ensure reasonable cost and reduce bureaucracy for RE to develop.

In another development, Nik Nazmi said the ministry would develop the National Water Policy by emphasising the role of water in the management framework involving the environment, climate change, energy, biodiversity and natural resources.

He said about 90 per cent of natural disasters happening in the world were water-related, either due to floods or droughts, causing millions of losses every year.

The ministry, he said, needed to strengthen the implementation strategy involving the reduction of disaster risk and the impact of climate change, namely floods.

These include the conservation of water catchment areas as natural treasures that are very important in for the country's water resources, he added. - BERNAMA