Wednesday, February 24, 2010

ELECTRICITY: BN's failures causes more suffering to the people - do not increase electricity charges

Well, the UMNO-led BN government is now thinking about increasing electric tariffs again...

Help all Malaysians - for this BN government is really becoming 'oppressive' - and its recent actions are affecting the lives of ordinary people in Malaysia.

Where is the consultation? Where is the referendum? Where is the justification? 
Privatization - that is what it did to our basic amenities - and basic amenities suppliers. Lock stock and barrel was given to "private" companies. In truth, the government of Malaysia still is the substantial shareholder - but they love 'playing games' with the people....

They say TNB wants to increase the tariff - and our 'good caring' Barisan Nasional government is on behalf of the people  not agreeing to that....and maybe will get a 'reduced' increase in tariff....and they expect Malaysians to all applaud the efforts of this government. 
It should never have been privatized/corporatized  - because a company is only concerned with profits, and when it comes to basic amenities - the government should be in charge, and its objective/target must be to ensure that all Malaysians get electricity supply and at a nominal/affordable rate. 

In the financial year of 2009, there was about 16% increase in annual revenue...(i.e. from

In 2009, there were 2 increases in electricity tariffs  - one in March 2009, and another in

Why is the Malaysian Barisan Nasional Government still relying on coal for power generation? Why are we not looking at solar energy, wind, etc...

Solar energy - problem was storage but now what we can very easily do is to directly connect it to the national grid - This is something that France is doing (or planning to do). We are in the equator and we are blessed with year long sunshine - something that we can very easily take advantage of. So, why are we not doing this? 

Possibly depletion of coal ...increase in coal prices are all things that could have been forseen long time ago - and we could have got things ready in 'good times' but alas, the problem in Malaysia have been poor money management (paying so much more for projects that really needed - and, of course this may have enriched some...) It is sad to see that Mahathir's son and Najib's brother sitting in that list of top 40 richest Malaysians. [Of course, there are other richer people - but many may be 'hidden' rich persons - using proxies and Bank nominee system to stay below the radar...] 

Corruption, 'unjustified excess spending' and un-trustworthiness  has put Malaysia in the bad light of lending institutions. The recent refusal/delay to settle the bill for election paraphernalia would have seriously jeopardized Malaysia's credibility.
Malaysians are still suffering from the effects of the economic crisis. So many workers are receiving part wages...or no wages. Some have had their factories stop operations - and they wait eagerly for the unpaid wages. Many of these are the smaller factories/companies - and the government seem not too concerned or helpful. To make matters worse, the banks in Malaysia are going after these 'struggling companies' - and by doing so, these companies will literally die. A good government would have got the banks to not commence suits (and/or chase for their monies) at this stage. We need financial assistance to be given to these companies. The government need to help develop new markets ...or even help these local companies re-structure their productions/etc - but alas, the Malaysian BN government is not interested.

Rather than being there for the people, Malaysia's BN government has been doing things that make things even worse. 

GST - everytime you buy things, you pay tax -and this will mean that this will automatically increase the cost of things.

Fuel Prices - now there is talk about removing subsidies - hence increasing prices.

Sugar - subsidy cut, and prices go up not just for sugar but all other stuff that uses sugar - i.e. canned/packet drinks, kicap, etc..

Now, electricity tariffs

Rumah kedai (Shop houses) - traditionally the small shop owners will stay on top of his shop. Why? convenience well as for security reasons. A lot of 'migrants' (Malaysians coming from other towns to study and work) also stay in these shop houses. Why? It is close to their place of work/study and have easy access to food, shops and other entertainment - and you save on public transport (taxi). Then Malaysian BN-government classified these 'shop-houses' as commercial property - and people who stay here will have to pay commercial rates for electricity, water, indah water, telekoms, etc.. Why? In the smaller towns, people suffered a lot because of this...

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. - New Straits Times, 24/2/2010, New power tariff from March 1

Lies - the report seem to suggest that the Government has not allowed for a tariff increase despite the fact that TNB has asked for it since 2006. I looked at the TNB Annual Report, and the CEO himself says that for the 2009 Financial Year, there have been 2 tariff adjustments, i.e. on 1/7/2008 and 1/3/2009.

The TNB CEO earns about RM92,000 per month in 2006/7(based on 2007 Report) - surely now it is even higher. This means that he earns more than a Member of Parliament...more than a Menteri Besar...more than a Minister...and more than the Prime Minister.. - this is so wrong. Is this not a government company? Money should be used in keeping price of electricity down - not wasted in excessive salaries.

Contrast their household income with the remuneration of the Tenaga Nasional Bhd CEO, who earns over RM1 million per year:
Basic salary RM600,000
Bonus RM302,000
EPF contribution RM113,280
Car allowance RM42,000
Flexible benefits RM50,000
Total RM1,107,280
Figures are from TNB’s 2007 Annual Report.
That translates to RM92,273/month for running what essentially amounts to a monopolistic service. Has he succeeded in renegotiating the Power Purchase Agreements with the IPPs? Tenaga is bleeding from these PPAs, under which it has to pay the IPPs ‘capacity payments’ for electricity it doesn’t really need. - Anil Netto's Blog

1 comment:

toddjames said...

Good post, I appreciate the stance taken on increased electricity charges which is truly detrimental to society. My client, Low Cost Power advocates lower Electric Power costs through deregulation.