KUALA LUMPUR: The cabinet will decide today on the new electricity tariff which will take effect next month, Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said.

He declined to provide details on the new tariff structure, which would start on March 1, but said the welfare of the poor would be protected even if there was an increase in rates.

He said the ministry had submitted a proposal about reviewing the power tariff to the Economic Planning Unit in the Prime Minister’s Department.

“If the cabinet approves, there will be some increase ... it can’t be a reduction,” he said at Tenaga Nasional Bhd’s Chinese New Year gathering here yesterday.

Chin, however, said the new tariff structure would retain the free electricity scheme for households that used power below a certain level.

On the percentage of increase, Chin said: “I can’t tell you, because the cabinet may decide otherwise tomorrow (today).” Chin said recently that his ministry had studied the triennial basic tariff adjustment proposal by TNB, adding that the hike could not be avoided because of increasing coal and gas price worldwide.

TNB requested for a tariff increase in 2006. Recently the national power supplier announced that the cost of coal was about US$80 (RM271.6) per tonne for the first quarter of the year.

Coal prices are expected to increase further because of severe winters in the northern hemisphere.

On the current dry spell, Chin said the situation at dams and catchment areas nationwide was good. However, he said the water level at the Sembrong Timur water treatment plant in Kluang, Johor was reported to be critical because Sungai Sembrong’s water level was decreasing.

Chin said if supplies dropped to a dangerous level, water conservation would be carried out.

Present at the open house were Deputy Energy, Green Technology and Water Minister Noriah Kasnon, TNB director Tan Sri Lau Yin Pin and its chief executive officer, Datuk Seri Che Khalib Mohamad Noh.