Is electricity tariff cut a ‘bribe’, asks Guan Eng

Penang Chief Minister Lim Guan Eng says consumers can thank Datuk Seri Anwar Ibrahim for cheaper electricity. – The Malaysian Insider pic, February 12, 2015.

Is the electricity tariff cut an election gimmick for the impending Permatang Pauh by-election?

DAP secretary-general Lim Guan Eng asked this today following yesterday's announcement by Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili that the new tariff would see a reduction of 2.25 sen per kWh from March until June for the peninsula.

“We are shocked with the announcement. Why is the reduced tariff good only for four months?

"It is unusual because usually a tariff reduction is good for a longer term, like a year. So what happens after June?

"Is it part of the preparation for the Permatang Pauh by-election? If it is, then Datuk Seri Anwar Ibrahim has given the people a present," he told reporters at his office in Komtar today.

Ongkili announced that the revised tariff will only affect those using more than 300 kWh a month and allow consumers to save between RM13 and RM45 per month, depending on their usage.

Tenaga Nasional Berhad (TNB) also announced the reduction in electricity tariffs by 2.25 sen, effective from March 1 to June 30, 2015. In Peninsular Malaysia, TNB charges a tariff based on five tiers.

According to TNB, its average tariff will be reduced from 38.53 sen/kWh to 36.28 sen/kWh. TNB also announced that for Sabah and Labuan, tariffs will decrease by 1.20 sen/kWh (down 3.5%) and the average tariff will decrease from 34.52 sen/kWh to 33.32 sen/kWh.

Lim, who is also Penang chief minister, said the reduction was "completely inadequate" and would not really benefit the people with its limited impact.

He said if TNB wanted to reduce the tariff, it should do it properly and make it meaningful to the people.

"I am not saying that TNB has to slash it by 50% based on the drop in global oil prices. Just a 35% cut will do.

"Why 35%? That was the increase in profit TNB recorded in its first quarter last year. If it made that much money, why can't it share with the people and cut the tariff by 35%?

"If TNB made that much, it cannot say it still has a high cost structure with the oil prices now down. So we hope they will not just slash the tariff by so little and just for four months."

Lim was also asked if the Penang government was worried that foreign investments would be affected by the Federal Court's decision to jail Anwar.

He said the state would do what it could to reduce the economic impact but investors' perception depended on the federal government’s actions.

"At least in Penang, we do not call for racist boycotts like (Agriculture and Agro-based Industry Minister Daruk Seri) Ismail Sabri Yaakob," he said, referring to Ismail's recent remark that targeted Chinese businesses that failed to reduce prices of goods.

- TMI