Electricity tariff increase: 4 things KJ needs to know

Needs to do homework ..

Getting sloppy. A lot of people unhappy with the proposal to increase electricity tariff by 4.99 sen per kW/h starting Jan 1 direct their dissatisfaction at the Government, at PM Najib Razak, and the Minister responsible. That is natural. Others hurl abuses at the Tenaga Nasional Berhad and Petronas as well. That is to be expected, too. 

But for Khairy Jamaluddin to single out TNB and accuse the utility of thinking only of profits (instead of the people) over the tariff increase? Read h e r e. I say he's getting sloppy, not doing enough homework. And hypocritical, given that he is a full Minister in Najib Razak's cabinet. And downright irresponsible.

The First thing KJ needs to know before he accuses anyone else is this:TNB did NOT propose the tariffs to be increased. Repeat. TNB was NOT the one that proposed the tariff increase. That credit must go toMyPower Corporation, the agency under the Ministry set up to oversee the transformation of the power industry, including matters pertaining to tariffs, PPAs, IPPs, etc. 

So, why did MyPower ask the Government to increase the tariffs? 

That's the Second thing KJ needs to know. The tariff increase is a consequence of the Government's subsidy rationalisation program, which will see the removal of gas subsidies and the introduction of LNG at market prices. The only way to "pay" for the removal of these subsidies is to increase the electricity tariffs as proposed by MyPower. Khairy should have commended MyPower for having made sure that 70% of the consumers in Semenanjung and probably more in Sabah and Sarawak will not be affected by the tariff increase. (These are people who use less than 300kW/h or whose electricity bills are less than RM77 a month).  

The third thing KJ needs to know is that the increased tariffs will contribute nothing to TNB's profits. Zilch. Zero. Of the 4.99 sen increase, only 0.90 sen (18%) will go to TNB for capital and operational expenditure to do system improvement for the next four years. The rest goes to Petronas (3.92 sen or 79%) and coal 0.17 sen or 3.4%).  

The fourth thing KJ needs to know (because it is clear that he doesn't realise it) is this: he is a member of Najib Razak's administration, the very government that is promoting the subsidy rationalisation program to help stabilise its finances, the very government that appointed MyPower to do a job, and the very government that has approved (or will approve) the new tariffs. KJ cannot pretend that he is not part of of this decision-making process, part of this collective responsibility.

If KJ wants to be popular, try this: help make sure that the 70 per cent that his Boss is trying to safeguard from the effects of the tariff increase will, indeed, be spared when the affected 30% decide to pass down their higher bills to consumers. ie the very people in the 70% bracket! 

-rocky's bry