On Monday, Energy, Green Technology and Water Minister Datuk Maximus Ongkili announced electricity hike with shocking quantum that has now attracted criticisms from politicians of both divide.
Even Umno Youth chief Khairy Jamaluddin who is a Minister broke ranks and spoke against the hike, saying that Tenaga Nasional has clearly placed profit before the interest of the people.
Looking at the massive criticisms, I think the increase can best be described as “too much, too soon, unfair, untimely and unjustifiable”.
There are 4 basic questions which Datuk Maximus should answer:-
- Why was there no prior public consultation? Has he forgotten that the Prime Minister Datuk Seri Najib said before that “the era the government knows best is over?”
- Why must the increase be so steep when there was already an increase of 7.12 % in June, 2011? What has happened to the BN’s slogan of “People First”?
- Why has he failed to give a longer notice? Is he not aware that commercial and industrial users especially need time to mitigate the higher cost of doing business and running production?
- Is he not aware that the hike will push up the prices of many goods and bring burden to even the lower income group?
While the steep hike came as a shock, the failure of the Government to cut the huge subsidies to the independent power producers (IPP) is a big disappointment.
Why should consumers and industries continue to bear the brunt of government‘s policy of subsidy rationalization when the IPPs which have reaped huge profits continue to enjoy huge subsidies due to unfair power purchase agreements?
On May 19, 2011, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah had said that the controversial gas subsidies for independent power producers were under review.
More than 2 years have passed, nothing has been done by the government yet it has announced two electricity hikes effective on June 1, 2011 and Jan 1, 2014.
I therefore call on the Cabinet to review the electricity hike and to get the independent power producers to renegotiate the power purchase agreements.