by Lim Guan Eng

(Petaling Jaya, Tuesday): I wish to challenge Energy, Water and Communications Minister Datuk Seri Lim Keng Yaik to a public debate on whether the people do indeed support TNB’s unfair 12% electricity tariff hike, the rationale for imposing such a hike without any contribution from the IPPs and the country’s energy policy.

In today’s papers, Keng Yaik had attacked the DAP for politicizing the issue despite the people having accepted the tariff hike. Keng Yaik said that I can talk very well but had no experience in industry and claimed that he was not afraid of me, even though I went recently to his Parliamentary constituency in Bruas to attack him.

If what Keng Yaik says is true then he should not be afraid of having a public debate on the serious issues of the fairness of an electricity tariff hike, why the people have to bear the burden of the tarrif hike to protect the hefty profits of IPPs and the country’s energy policy. DAP totally rejects Keng Yaik’s wild and baseless claims that the people accept the 12% electricity tariff hike. Everywhere DAP went, including his constituents in Bruas, the people have expressed anger at the the tariff hike, especially the government protecting the interests and profits of IPPs at the expense of consumers.

Keng Yaik should show proof how the majority of Malaysians have accepted the government’s decision to raise tariffs by 12%. This is another lie by Keng Yaik just as he lied on 13 January 2005 by failing to fulfill his promise to make Tenaga Nasional Bhd pay compensation to the public for losses caused by the 3-hour blackout on 13 January 2005 and not daring to oppose Tenaga’s latest request for a tariff hike.

On the day of the mass blackout, Datuk Dr Lim’s statement that consumers can claim compensation from TNB was given front-page treatment in the Chinese papers on January 14^th.  He repeated that after a Cabinet meeting on 27 Janaury 2005 that whether it is a technical fault or human error, TNB has to bear full responsibility. Subsequently TNB repudiated Lim Keng Yaik’s disclaiming liability because the mass blackout affecting 4 staes was less than 4 hours.  One and a half years later, Keng Yaik has still been unable to fulfill his promise showing he is not a reliable, trustworthy and a responsible Minister.

Whilst Datuk Seri Dr Lim and TNB can talk in technical terms the reasons behind the breakdown, the fact remains that TNB has failed in its primary statutory duty to ensure regular power supply. This is a serious matter as millions of ringgit of losses from industries affected by the mass blackout is involved.

With such a pathetic record, Keng Yaik has minimal credibility when he talks of a client charter and TNB paying rebates or compensation to consumers when there is a blackout. TNB has never paid compensation on its own accord or on the direction of Keng Yaik as Minister as TNB will only pay when directed by the Prime Minister or Cabinet.

To save costs, Keng Yaik should ask TNB to stop spending on a RM9 million advertising campaign to counter the negative perception and educate consumers that TNB is inefficient when there is a blackout.  

All Malaysians Shoulc Come Together To Fight For The Common National Interests Of The Country Against Keng Yaik And BN Fighting For The Selfish And Narrow Profits Of IPPs.

DAP would ignore the criticisms of Keng Yaik and continue to explain to the people the injustice of the 12 % tariff hike as IPPs are the principal cause of such losses to TNB, are completely unaffected by rising fuel and gas prices. The gross injustice of IPPs and the cost the consumers and the country can be shown by the RM3.3bil in capacity payments paid by TNB as at August 31 2005. This has caused TNB to have one of the highest reserve margin in the world of 40% (when the international benchmark is 15-20&) by paying for energy TNB does not need.

It is ridiculous that revenue from the tariff hike will not be used to improve service or add shareholder value that benefits Malaysians, who are the shareholders, but to pay IPPs for power that is essentially not needed by TNB. If the reserve margin were reduced from the present 40% to 20%, TNB would save more than RM1.6 billion annually, which is more than sufficient to cover the RM 1.5 billion increase in revenue from the present 12% tariff hike.

Logic suggests that TNB or the government can come up with a triple win solution for consumers, TNB and the country by reducing both the reserve margin and the capacity payments to IPP by half without burdening the people. Consequently there would be no necessity for any tariff hike. Why should consumers be asked to sacrifice but not the IPPs who are allowed to continue to enjoy high rates of returns and hefty profits unaffected by high fuel prices?

DAP will continue to do our duty to speak up and defend the rights of consumers and TNB. It is Keng Yaik’s right if he wants to speak up for IPPs which have earned billions from TNB. But DAP will not be cowed or silenced by Keng Yaik or the IPPs but will continue to speak up for the people in demanding full accountability and transparency in the Power Purchase Agreements(PPAs) signed between TNB and the IPPs.

DAP demands a full review of the condition in the PPAs guaranteeing hefty profits where TNB is forced to buy power generated at set prices whether they use it or not and risk-free by allowing IPPs to pass on rising costs of raw materials to TNB. The time has come for all Malaysians to come together to fight for the common national interests of the country against Keng Yaik and BN fighting for the selfish and narrow profits of IPPs