Tuesday 31 May 2011

Electricity tariffs hike: We pay for IPPs' profits

'Why was the government compelled to arm-wrestle TNB into accepting the IPPs, which have been laughing all the way to the bank?'

Power rates up 7%, gas price to be floated

Ferdtan: We are not against the gradual removal of power subsidy per se. We are only angry on the ineptitude of the our 'big-spending' government.

What has happened to all our money? Malaysia is a rich country - we have valuable oil and gas. By exporting the surplus oil, we are making more money now, especially with the global rise in oil prices.

We were at one time the largest producer of palm oil in the world (we lost the position to Indonesia in 2007). We have timber, sago, rubber and many other primary products.

Previously, we were well-known in the manufacturing sectors, like electronics, air-conditioners, etc. Our national reserve, by right, should have enough to last us for some time if the government was prudent with our money.

Instead, we have expensive mega-projects, illegal leakages due to wanton corruption and wasteful projects for Umno cronies like the IPPs (independent power producers). It's time to change the government to ensure accountability and transparency before the rot sets in.

Observor: Tell me any industry that does not use electricity. Industries and the service sector such as hotels will feel the pinch and will have no choice but to pass on the increase in tariff to the consumers.

The poor households will be affected albeit indirectly. Talk about helping the rakyat. We are being hit left, right and centre.

The spiralling inflation will eat into our wages, making us poorer. I absolutely don't believe in the figure of 0.27 percent impact on inflation. What rubbish is this! The rakyat cannot be fooled.

Ruben: So in increasing electricity tariffs, inflation will only rise 0.27 percent. When cement prices goes up, the increase will be 0.27 percent. When petrol prices go up, it will increase by another 0.27 percent and the list goes on and on, and before you know it the rakyat will be faced with significant inflation burning a big hole in our pockets.

Government expenditure will still be very high and despite all this so-called savings as they will be wiped out by bailouts, corruption and payments of 'commissions'.

Malaysians Are Not Stupid: Don't get me wrong, I do not support the BN administration, but I do not see a point in complaining about the price hikes. It is happening everywhere and we need to adapt.

I am a student in the UK and the inflation here is worst than Malaysia's - at 5 percent and growth is anaemic at best. The people here are adapting instead of clamouring for subsidies.

We will destroy ourselves if we subsidise everything as I believe that money wasted on subsidies can be better spent on education, infrastructure or better yet, plug the budget deficit and bring down national debt. RM25 billion per annum is not a trivial sum to play with.

Rakyat Malaysia: Yes, inflation is everywhere in the world. But is our government plugging the corruption and wastage? No.

Is our government trying to do like what Singapore government is doing to fight inflation? No. Does the BN government has the people's interest at heart? No.

Are we adapting to it? Yes, we have no choice - after all, we have been asked to 'ubah gaya hidup'. Are we seeing corruption being addressed and the government saving money? No.

Pakman: TNB is enjoying fuel subsidies and passing this to the IPPs at the expense of the poor rakyat. This what BN policy of 'Cronies First, Rakyat Later'.

The 5.49 million household will definitely be affected when the suppliers, shopkeepers and food manufacturers absorb these power price increase by passing it to the eventual users. Even now the rakyat is struggling to keep up with the increase in price of food stuffs and fuel prices.

Barang Naik (BN) has not been able to administer the economy of Malaysia despite been endowed with rich natural resources. Let Pakatan Rakyat wins the GE13 and see how different the policy toward reforming the economy for the poor rakyat.

Remember to register as a voter so that the change of better government in GE13 will be achieved.

FellowMalaysian: I abhor the 7.5 percent increase in TNB's tariff. TNB has been known to be a highly inefficient GLC (government-linked company) and they have shown little effort to dispel the notion that they are a lazy and ponderous lot and will rather hide behind the government's skirt when things get rough for them. Like what is happening now.

Look, TNB is enjoying fuel subsidies from the government to the tune of billions of ringgit each year. Yet, almost every year they will never fail to demand for price hike, which they get every two or three years. What have they done to deserve this pampering?

Why was the government compelled to arm-wrestle TNB into accepting the IPPs, which have been laughing all the way to the bank? The government is supposed to help the poor and eradicate poverty, but are now removing the RM20 waiver to low-usage householders?

You got to be eating your own words, PM Najib Razak. I say no to this increase until TNB sheds its bulges and trim down its size.

Wira: A 0.27 percent increase in inflation? That was what they said when they increased the price of sugar. A cup of black coffee here went up from 80 sen to RM1.20. Everything else went up by the same margin, including all hawker food.

Righteous: Instead of "We shall defend Putrajaya at all cost", it is "We shall defend the IPPs at all cost".

The above is a selection of comments posted by Malaysiakini subscribers. Only paying subscribers can post comments. Over the

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