Power tariff hike by Tenaga Nasional Bhd (TNB) not acceptable with 88% rise in net profit this year to a record RM 4.06 billion against RM 2.16 billion previously
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Press Statement
by Lim Guan Eng
_________________
(Petaling Jaya,
Saturday):
DAP firmly opposes any
proposed power tariff hike by
TNB chief executive officer
Datuk Seri Che Khalib Mohamad
Noh as not acceptable, greedy
and irresponsible with the
88% rise in net profits this
financial year ending
31.8.2007 to a record RM 4.06
billion against RM 2.16
billion previously. Prime
Minister Datuk Seri Abdullah
Ahmad Badawi said that no
decision had been made on the
request following the
escalating fuel price which
exceeded US$ 92 per barrel.
Even though the rise in fuel
price hurt TNB, ordinary
people are hurting more from
rising prices in most
commodities.
TNB was still able to achieve
record profits despite the
record fuel prices unlike
ordinary Malaysians who are
unable to make ends meet.
Moreover, TNB continued to
enjoy gas subsidies from
Petronas. Petronas'
cumulative subsidy since 1997
amount to RM 58.2 billion, of
which RM 48.8 billion was to
the power sector and RM 9.4
billion to the non-power
sector. Subsidies are part of
socio-economic measures meant
to help the poor. Something
is very wrong when subsidies
are offered to huge companies
to further pad their
extra-ordinary profits.
TNB should cut costs, be more
efficient and focus on
productivity gains instead of
taking the easy way out of
increasing power tariffs.
Such a tariff hike would be
contrary to government
efforts to control inflation.
As a public utility owned by
the public, TNB should suffer
together with the public and
not benefit at public
expense. Despite the record
profits of RM 4.06 billion,
there are no plans announced
by TNB to share such earnings
with consumers. Where then is
TNB’s social corporate
responsibility by seeking a
power tariff hike that will
only add on to the financial
burden of consumers at a time
when TNB is making record
profits?
(27/10/2007)
* Lim Guan
Eng,
Secretary-General of DAP |