BUSINESS associations want a moratorium on the new electricity surcharge after their monthly electricity bills have skyrocketed by almost 30%.

The new surcharge rate of 20 sen per kilowatt hour (kWh) for non-domestic users was introduced earlier this year. 

In a statement, seven business associations that include hotels, shopping malls, entertainment outlets and theme parks, in a statement today, want the moratorium to last until the end of the year.

“As electricity is an essential utility for businesses to operate, it therefore also constitutes a significant portion of its operation costs. 

“Recently, hotels, theme parks, entertainment and related industries including shopping malls and retailers all over the country were shocked when they received their January electricity bill as they faced a minimum 20 to 30% increase in their monthly bill compared to the prior year with similar usage,” the associations said. 

With most of the industries just starting to recover following the Covid-19 pandemic, these businesses, among the hardest hit, urged the government to grant them a moratorium for electricity bills until the end of the year. 

They claimed that the new tariff, along with the revision of the minimum wage “hits below the belt”.

“We are also unable to fully capitalise on the recovery period due to being affected by the lingering effects of the pandemic such as the manpower shortage and the general caution for people to travel.

“Additionally, recent legislation such as the minimum wage revision and amendments to the Employment Act have further hampered our various industries recovery process. We also have to contend with this immense and sudden upsurge in our energy bills that hits below the belt.

“Hence, we would like to sincerely urge the government to provide a moratorium for the new electricity tariffs to all commercial users until the end of 2023 as to provide us with time to recover,” they said. 

The associations said the constant and increasing pressure towards businesses, at a time when Malaysia is stepping up tourism efforts, is taking its toll on them as they are unable to operate efficiently and effectively.

They are hoping to hear a favourable response soon. 

They also welcome an open discussion session with the Natural Resources, Environment and Climate Change ministry for the overall betterment of industries in Malaysia. 

The groups that signed the statement were the Bumiputera Retailers Organisation, Association of Hotels, Malaysian Association of Hotel Owners, Malaysia Budget and Business Hotel Association, Malaysian Association of Theme Parks & Family Attractions, Malaysia Retailers Association and Malaysia Shopping Malls Association. 

Previously, the government had decided to charge medium voltage, high voltage and multinational corporations with an electricity surcharge of 20 sen per kWh for the regulatory period between January 1, 2023 and June 30, 2023.

This was a huge jump from the 3.7 sen per kWh surcharge imposed on non-domestic users in 2022. –  February 8, 2023.