Last month, the government announced that there would be no increase in electricity tariffs for domestic users in February despite previously indicating it would introduce them as part of revisions set under the Incentive-Based Regulation (IBR) framework, brought about by rising fuel costs.
The decision means that the electricity tariff remains at 39.45 sen per kWh, while consumers will continue to enjoy a rebate of two sen per kWh without any surcharge. However, while the tariff has remained unchanged for non-domestic users (commercial and industrial), these sectors will have to pay an electricity tariff surcharge of 3.7 sen per kilowatt-hour from February to June.
This has not gone down well with business owners and traders, with business groups urging the government to intervene and bear the temporary rise in fuel prices rather than impose an electricity tariff hike, the New Straits Times reports.
In a joint statement, 11 business associations and trade groups stated that the recent increase in surcharge would only “set the train of inflation further” and ring a death knell for many businesses and enterprises, many of which would not be able to absorb the increase even if the economy was thriving.
“The sudden and immediate implementation of the hike in electricity charges is shocking in so many ways. Firstly, it was announced without any discussions with stakeholders and consumers. Secondly, it was implemented immediately on February 1 and the hike that was effectively more than 15% (or up to 25% on off-peak tariff) is shockingly high. Thirdly, the government has warned businesses not to pass on the cost of the hike to consumers,” they said.
“At this critical juncture where all businesses, big and small, are still struggling in the survival and revival mode, this hike could be the death knell of many enterprises,” they said, adding that the electricity tariff hike will increase the cost of essential goods and services, which would further restrict and reduce the purchasing ability of consumers.
In the automotive domain, both production and retail segments are set to see an increase in electricity expenditure, and operators of electric vehicle charging networks at commercial locations would also be impacted by the move. The groups also raised concerns that the electricity tariff hike would lead to a new pricing regime for goods and services that will persist.
The business groups said that while fuel costs have escalated due to mainly supply chain interruptions coupled with geopolitical trade play, they were confident that market forces will eventually end the energy woes once the supply chain is restored.
“Once the supply chain is restored and normalcy returns, market forces will cause the predatory pricing to recede and competition will prevail. In this predictable short term disruption, it is more prudent for the government to intervene and support the temporary pain and not pass the burden on to the consumer,” they said.
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Currently TNB is producing 40% more electricity than we need during peak hours. So i dunno why they keep on issuing new power stations to be built when they are already over producing. Cheaper to shut down two or more power plants.
Is TNB losing 10 Billion RM lately?
If no,then what is the rationale for commercial rate hike?
It should behave like Petronas,doing NATIONAL SERVICE.
If not,one can expect roti chanai to spiral to Rm2 a piece,teh tarik Rm 4 a glass,tambang bas to naik(cos repair workshops operate using TNB power).
Every damn business that has a plug to TNB ,will have to jack up their prices of goods and services.
OMicron has already caused so much fear in us.Now,more people are thinking of squeezing the last drop of their payroll.
Do you call this “KELUARGA BOLEHLAND” ?
The rich can afford to buy an X50 and X70 and even X90,no problem.(as toys) But those thinking of a new Myvi..is holding back.
Rationale? Easy. Have you seen prices of crude oil & NG lately?
Easy to demand TNB do NATIONAL SERVICE but does Petronas sell RON97 at RM 2.05/L? No? Then what NATIONAL SERVICE BS are you talking about? Then if they make losses due to NATIONAL SERVICE (ie MAS) are we going to criticise them? That is just stupid!
TNB already has withhold raising tariffs on resident properties, that is justified but businesses & industries are making income and profits so why can’t they pay up? They froze or cut salaries, fire staffers, no bonus, and cut allowances all to feed their new Benz or Bimmer. Stop defending these bloodsuckers. If they cannot pay their dues, they shouldn’t be in business.
What matters is the burden not passed onto the rakyat, and the significant withholding to raise residential rates helps to keep the countless of people afloat in these times. It is quite a huge sum and the raise in business tariffs might not even cover the loses incurred from residential if the fuel price continue to rise, but if the Government persevere and maintain rates for the rakyat, this is the true spirit of KELUARGA MALAYSIA.
The rich can afford to buy an X50 and X70 and even X90,no problem.(as toys) so they can easily afford to pay the higher tariffs.
All these are just excuses, businesses in the Northern hemisphere have to bear higher electricity tariffs this time of the year on a yearly basis and no one is making noise. Businesses here are way too pampered and lead them to be uncompetitive when going into the outside world. All they could do to compete is lowest price possible by paying peanuts to their workers and suppliers, while chauffeured around in S Classes & Alphards. They have no right to complain.
Rise in crude oil prices is good for the country as it leads to higher revenue and income to the us. These greedy towkays better just shaddup and pay decent wages rather than cry in their luxury mansions.
Exactly. They should invest into harnessing renewable energy especially solar power at their business facility instead of splurging on new mercedes’ and bmws for their sugar babies.
Yes, the voices of the working class must now rise against the tide of capitalist supremacy!
When making tons of profits, keep silence and avoid to pay taxes.
When in trouble ask government to interfere and help.
Not fair!
Of course they will increase the tariff. How do you think they are going to reimburse the discounts given to you during the beginning of the pandemic? There’s no free brunch.
This is the problem when you have a monopoly!!!! What is the govt doing over here??? For the rakyat or profit???
For the rakyat of course! Why else the rakyat is quiet but the business towkays are making these noise?
Of course, EV charging cost should increase 10 percent over just 1 year, because electricity cost is tightly linked to climate and inflation. :)
U think this government care?
Why else would they freeze hiking residential tariffs if they didnt care?
TNB is producing too much power that are not sold. 40% over capacity. Better for thrm to dhut fown two vozl powered power plants to reduce cost of operstions. When energy price is high, more than 50% of operating cost is due to fuel.
So people do not see the connection of money given out during covid.
What govnerment does best is giving out money and collecting double.
Best way to collect and fastest through utilities and etc
And all utilities are tied to the government.
Simple maths the rest are just a cover to collect more monies