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FMM cries foul over electricity surcharge
savemalaysia
Publish date: Mon, 02 Jul 2018, 06:16 PM
KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM) is crying foul over the recent electricity surcharge, saying it came with such short notice that industry players, especially exporters, had insufficient time to adjust to the additional cost.
President Datuk Soh Thian Lai said business owners, especially exporters whose contract terms had been agreed upon earlier, would need to brace themselves for higher than usual electricity bills following the implementation of the Imbalance Cost Pass-Through (ICPT) mechanism.
“The ICPT should have been moderated to take into consideration the recent natural gas price increase by removing the rebate without imposing any surcharge.
“The increase in electricity cost to the manufacturing sector is estimated to be higher than six per cent in view of the rebate enjoyed in the previous six months,” he told Bernama.
On Friday, Tenaga Nasional Bhd announced that beginning July 1, 2018, commercial customers and businesses have to pay a surcharge of 1.35 sen/kWh due to higher fuel and generation costs.
It explained the average base tariff remain unchanged at 39.45 sen/kWh.
However, due to the higher fuel and generation costs from January to June 30, 2018, the additional cost of RM698.19 million or 1.35 sen/kWh ICPT surcharge, will be passed through via the ICPT mechanism.
However, household customers with monthly consumption below 300/kWh will be unaffected.
The ICPT mechanism enables TNB to pass on change in the fuel and generation costs to consumers’ electricity tariff every six months.
Asked on the absolute impact, Soh said it would vary according to the tariff category and electricity consumption of each individual company and urged the Government to maintain electricity tariff at this present time due to many existing regulatory cost burdens. - Bernama
https://www.thestar.com.my/business/business-news/2018/07/02/fmm-cries-foul-over-electricity-surcharge/
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Discussions
Be the first to like this. Showing 15 of 15 comments
When electricity goes up for manufacturers, they will try to cover the cost by charging this to consumers - us! Oiyoyo!
2018-07-02 18:31
TNB Invests In 30% Stake usd250million for Gama Enerjiin in 2015. in same year, tariff increase. 2018: Tenaga may invest further 50% stake, thus tariff increase again. what a co-incidence? see the relations?
2018-07-02 19:57
What's the real function of TNB as a GLC? To ensure constant supply of of power at lowest tariff as social service or make huge overseas investment like 1MDB and make big profit by increasing the tariff? This TNB tariff is really unbearable. Why new govt. approve the rise vastly different from their promise? I'm very frus with this cakap tak serupa bikin govt
2018-07-02 20:12
if TNB is to act like private sector only to make huge profit with no social function, then, govt. should liberalise this sector. Why allow TNB monopolize it and wantonly increase the tariff? What is the anti-trust act then? TNB also wantonly bill even without reader meter visited our house nowadays. just simply put a figure. why govt. is blind on this lousy service?
2018-07-02 20:43
I totally agree with u! U raised very good points! Where can we complain so that the gomen hear us? Does PH have a online forum that we can participate in?
2018-07-02 21:06
Gud!!! Btw, did Rafizi get a place in new cabinet? (I haven’t really go thru the list. Baru balik...) He contributed a lot leh...
2018-07-02 21:25
To raise or not to raise the electrical tariff will have impact to our society
At one hand, we are championing green & sustainable energy for our future generations.
At the other hand, we want dirt cheap electricity tariff until green technologies are not justifiable to be invested due to long ROI period. It is always contradicted with each another.
The immediate normal response from our society who are unaware about the green technologies will definitely opts for cheaper tariffs because they want to save on the utility expenses.
So, how to become developed nation with the sustainability awareness?
Before jumping to conclusion, please do a comparison on the electrical tariff with all the developed nations.
Both the cheap tariff & green technologies can hardly coexist together.
With cheap tariffs, no one will waste money for green technologies except the GLC with social responsibility ( Sime Darby )
With higher tariffs, more public & owner will opts for green technologies but the drawback is the higher tariffs. But the higher tariffs can be offset with the tariff saving from green technologies.
If I were factory operator, of course I'll also protest on the raise.
I think current government should get feedback from public, LAM, ACEM & BEM to get better picture before deciding after gauging the pros and cons.
2018-07-02 21:45
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Rafizi is correct. This hike may negate gst savings. Gomen should stop all hikes.
2018-07-02 18:29