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Malaysia Anticipates Rise in Household Energy Consumption and Costs Amidst Drought

As Malaysia faces an ongoing drought that has led to at least 10 dams reporting low water levels last week, the country's energy commission has announced an expected increase in household energy consumption and bills.

During a press conference on Wednesday (April 1), Chief Executive Officer Siti Safinah Salleh urged Malaysians to conserve electricity and consider adopting solar energy solutions.

She highlighted that the hotter weather anticipated in the upcoming months could significantly increase energy demand, particularly for households relying on air conditioning.

Siti Safinah recommended that households with higher energy usage and larger rooftops should explore the installation of solar panels to meet their energy needs, noting that market competition has led to a reduction in installation costs.

"There is competition, and companies offering solar installations provide incentives to their customers," The Star reported her as saying.

No Immediate Plans to Review Electricity Tariffs

When asked about potential reviews of electricity tariffs, she stated that while there are no immediate plans for such reviews, Malaysia's energy exposure is different due to its "more diversified" energy mix.

This statement follows Singapore's announcement on Tuesday, with the Energy Market Authority cautioning that future quarters are likely to see increases in electricity and town gas prices.

Siti Safinah explained, "Our supply mix is different from Singapore. They rely on imported natural gas, which will affect them sooner." Malaysia is a significant producer and exporter of liquefied natural gas but imports coal for power generation.

She further added that while Malaysia has secured coal supplies based on existing contracts, prices are expected to rise due to increased shipping and insurance costs.

"Therefore, the public needs to be prepared for higher costs. Although our increase may not be as pronounced as in other countries, there will still be an increase," she concluded.

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