Tuesday, October 28, 2008
Consumers want power tariff down
| Consumers want power tariff down |
Rahmah Ghazali | Oct 28, 08 5:45pm |
A consumer group has urged the government to practise what it preaches and to reduce the electricity tariff in line with fuel price revisions over the past four months. Consumer Association of Subang and Shah Alam (Cassa) president Jacob George said a reduction in tariff would be a huge relief to those who have to manage on a tight budget.“If the government keeps the current tariff, people will suffer. The government should re-examine the matter and give the necessary assistance,” he said. “The government has to realise that people are no longer spending as much as before because they are (anxious about) the global economic crisis. Even a two percent reduction of the electricity tariff will help them to save on other expenses.” Federation of Malaysian Consumers Association (Fomca) chief executive Muhammad Sha’ani Abdullah noted, however, that it is up to the government to set the electricity tariff rate. “Besides, there is no relationship between the tariff and fuel prices,” he said. National electricity provider Tenaga Nasional Bhd (TNB) could not be contacted for comments today, despite several attempts.  Last week, Energy, Water and Communications Minister Shaziman Abu Mansor had said the electricity tariff could not be reduced although the price of oil in the world market has dropped.He said the reduction in fuel price to as low as US$60 per barrel has no connection with electricity supply because power-producers in Malaysia use gas, coal, hydro and other sources of energy. "Furthermore, the electricity tariff (here) is still cheap, in fact below the power-generating cost,” Bernama quoted him as saying. Current tariff rate TNB chief executive officer Che Khalib Mohamad Noh had earlier said the tariff rate would be reviewed alongside increases in the price of gas, following the spike in crude oil price last June.  Under the current structure which took effect in July, the rate of 21.8 sen per unit for the first 200kWh (kilowatt units per hour) per month was retained.However, consumers who use 201-400 units are charged up to 34.5 sen per unit - up from 28.9 sen - an increase of 19.4 percent. Those who use more than 400 units pay higher rates. On Oct 14, Prime Minister Abdullah Ahmad Badawi had announced a reduction in fuel prices, the third time in four months, to track falling world oil prices and in a bid to curb rising inflation. Pump prices of petrol RON97 was cut by 6.1 percent or 15 sen to RM2.30 per litre. RON92 reduced by 10 sen to RM2.20 per litre, while diesel prices was lowered by 20 sen to RM2.20 per litre. |
