BN and Pakatan united against electricity tariff hike

The electricity tariff hike effective from Jan 1 next year has drawn flak from both sides of the political divide, with DAP, PAS, MCA and Gerakan all criticising the move today.

Calling it the government’s New Year gift for all Malaysians, the Penang Chief Minister and DAP secretary-general Lim Guan Eng described the hike as “untimely and unjustifiable”.

“Close to two million domestic consumers in peninsular Malaysia will still be hit by an average of 14.8 percent hike. In fact, among these two million consumers, 1.4 million of them paid no more than RM200 in their monthly bill before. 

“We are talking about a typical ordinary urban middle class family or even a large family in our rural areas. It is obvious to me that these middle class Malaysians families will be further squeezed by the tariff adjustment,” he said in a statement.

Lim (left) was concerned about the impact of the tariff hike on small businesses.  

“The sundry shops, coffee shops, barbers and all kinds of small business owners will have to fork out more to keep their shops open. 

“This will also be the case for our SME industries who have to maintain cost-competitive amidst increasingly challenging environment. Average tariff for both commercial and industrial consumers will increase 16.85 percent,” he said. 

“More worryingly, the small businesses in the commercial or industrial categories who consume no more than 200 kWh monthly will have to suffer a 10 percent hike in the electricity bill. This is grossly unfair and unjustifiable,” he added in a statement.

Cost of doing business up = higher goods prices

While the government claims 4.5 million of domestic consumers will not be impacted by this tariff hike, Lim said, “Ask any man and woman on the street, the answer will most definitely be different.” 

He noted that as commercial and industrial tariff increase, the cost of doing business will subsequently increase and it is only to be expected that the prices of goods and services will go up across the board. 

“Whether it is a packet of noodles, a simple meal or just a haircut, prices will shoot up.  Everyone will feel the pinch,” he said.

Meanwhile, MCA's presidential candidate Gan Ping Sieu said judging from the spike in TNB shares since the announcement was made, the move was not to minimise operating costs, but to bring "windfall profits" for the utility company.

"Such as move is unacceptable as the people are already burdened by increased fuel prices, assessment rates, and a host of other issues related to the government's subsidy rationalisation programme," Gan (right) said.

"The power rate hike will also increase production costs, and it will affect our competitiveness in the export market," he said, calling the move "ill-conceived".

Penang Gerakan secretary Oh Tong Keong also called for a review on the tariff hike, arguing that it would add to the people's burdens.

Oh suggested that the federal and state governments review the salaries of civil servants and called on the private sector to do the same.

"It is only with better income that the people will be able to cope with higher expenses," he said.

Perak PAS Youth chief Raja Ahmad Iskandar Al-Hiss branded the electricity tariff hike as a "gift" to the people from the BN government after winning the last general election.

"What is the guarantee that other sectors, including education, will not raise fees or prices in the future?" Raja Ahmad asked.