He said the higher power bills from the loss of rebates and the imposition of a surcharge would not be high enough to justify any increase in prices.

He said the domestic trade and consumer affairs ministry would deal with major companies to ensure there will not be an increase in the price of goods.

Ismail said the government had spent over RM1 billion in subsidies to industrial and commercial users in the past.

“This subsidy concept is flawed as it is given to larger companies when by right only the targeted groups such as the poor should get it. We are now in the process of rectifying this,” he said.

“That is why I had stressed that domestic users should not be burdened by electricity tariff increases, regardless of whether they are small or big homes. Whether they are from the B40 or M40 categories, everyone will be spared.”

Commercial and industrial users of electricity will lose a rebate of 2 sen/kWh and will instead have to pay a surcharge of 3.70 sen/kWh.

Ismail said the Cabinet Committee on Cost of Living will meet on Monday to find ways to reduce pressure on rising prices of goods. He said the Federation of Malaysian Consumer Associations and the Consumers’ Association of Penang have been invited to the meeting for the first time.