Prime Minister Datuk Seri Najib Razak said independent power producers (IPPs) unlikely to benefit the tariff hike announced by the government yesterday.

“It is wrong to say that IPPs have benefited from this amount of subsidy,” he said.

Najib said all government agencies will be required to reduce power consumption as there were too much wastage currently because of the current low electricity charges.

“There is no incentive for people to conserve energy,” he said.

In addition he said, if the electricity tariff remain low, there will be no incentive for companies to invest in alternative energy solutions.