Sarawakians pay more for power
Tony ThienPublished: Jun 5, 2006 11:35 AM | Updated: Jan 29, 2008 6:21 PM
Sarawak consumers are paying more for electricity than consumers in Peninsular Malaysia.
Despite TNB's 12 percent increase in power rates across the board, domestic rates in Sarawak are still higher.
Sarawak consumers are paying more for electricity than consumers in Peninsular Malaysia.
A senior academic, who declined to be named, said the consequence of all-round higher cost of doing business and higher cost of living translated into a lack of economic competitiveness in the world market.
It also amounted to Sarawak (and Malaysia) losing out further to other states of the federation and countries in the region when it comes to in-bound foreign investments, he added.
Despite Tenaga Nasional Bhd's (TNB) 12 percent increase in power rates across the board on June 1, domestic rates in Sarawak are still higher, at 34 sen kWh for the first 100 units and 29 sen kWh for the next 300 units compared to Peninsular Malaysia's 21.80 sen kWh for the first 200 units and 28.90 sen kWh for the next 800 units.
For example, a Sarawak household consuming 384 kWh monthly is charged RM116.36 and a flat rate of 50 sen as late payment surcharge and RM10 late payment service charge for overdue or late payment which works out to about 10% of the monthly bill.
It's unfair
"The late payment service charge is high," said a domestic consumer who asked not to be identified.
"In other words, for late payment even for a day you are charged about 10% of the monthly bill. It's certainly exorbitant and unfair.
"It works to about 120% interest on the total annual charges if payment is past due for each of the 12 months," he added.
Commercial users also pay more, at 40 sen kWh for the first 100 units and 34 sen kWh for the next 4,900 units compared with 32.30 sen kWh in Peninsular Malaysia.
Syarikat Sesco - a subsidiary company of the 64%-state-owned public listed Sarawak Enterprise Corporation Bhd (SECB) - has been given the rights to generate, distribute and transmit electricity in the state.
Its installed power generation capacity is 900MW , of which 65% comes from gas turbines. The existing demand is 750MW, with 150MW excess capacity. Ninety percent of power distribution goes through the Main Power Grid to which five main power stations in Kuching, Batang Ai, Sibu, Bintulu and Miri are connected. Annual demand growth is an average 8%.
According to a senior SECB official, only 6% of power generation is using diesel while gas is supplied on a long-term basis by Petronas to Sesco at a concession rate. Sarawak produces oil and gas, mainly for the export market and the special arrangements on concession rates on gas are in recognition of Sarawak's important role in the national economy.
Definite impact
Sarawak government officials said the difference in power rates in Sarawak is inevitable because of what they call 'the lack of economy of scale' - with the same or higher cost of power installations, distribution and transmission to homes, factories and offices over a much wider geographical area and much smaller population.
There are about 400,000 consumers in Sarawak.
On the other hand, in the peninsula with an estimated population of 20 million, TNB has a bigger consumer base and a much higher demand of about 12,000 MW.
An UK-trained accountant LP Voong told malaysiakini that the high excess capacity has a definite impact on the higher power tariffs in Sarawak.
"What will happen when Bakun comes on stream in 2009? Is the power going to go directly to certain energy-demanding industries like the proposed aluminum smelter plant in Bintulu? Will some of the power generated in Bakun go into the State Grid?"
"While it may mean that industries will find ever-ready power, even more important is the cost factor that prospective consumers will have to consider and whether it is still competitive with any of the other states in the federation," he added.
A senior academic, who declined to be named, said the consequence of all-round higher cost of doing business and higher cost of living translated into a lack of economic competitiveness in the world market.
It also amounted to Sarawak (and Malaysia) losing out further to other states of the federation and countries in the region when it comes to in-bound foreign investments, he added.
Despite Tenaga Nasional Bhd's (TNB) 12 percent increase in power rates across the board on June 1, domestic rates in Sarawak are still higher, at 34 sen kWh for the first 100 units and 29 sen kWh for the next 300 units compared to Peninsular Malaysia's 21.80 sen kWh for the first 200 units and 28.90 sen kWh for the next 800 units.
For example, a Sarawak household consuming 384 kWh monthly is charged RM116.36 and a flat rate of 50 sen as late payment surcharge and RM10 late payment service charge for overdue or late payment which works out to about 10% of the monthly bill.
It's unfair
"The late payment service charge is high," said a domestic consumer who asked not to be identified. "In other words, for late payment even for a day you are charged about 10% of the monthly bill. It's certainly exorbitant and unfair.
"It works to about 120% interest on the total annual charges if payment is past due for each of the 12 months," he added.
Commercial users also pay more, at 40 sen kWh for the first 100 units and 34 sen kWh for the next 4,900 units compared with 32.30 sen kWh in Peninsular Malaysia.
Syarikat Sesco - a subsidiary company of the 64%-state-owned public listed Sarawak Enterprise Corporation Bhd (SECB) - has been given the rights to generate, distribute and transmit electricity in the state.
Its installed power generation capacity is 900MW , of which 65% comes from gas turbines. The existing demand is 750MW, with 150MW excess capacity. Ninety percent of power distribution goes through the Main Power Grid to which five main power stations in Kuching, Batang Ai, Sibu, Bintulu and Miri are connected. Annual demand growth is an average 8%.
According to a senior SECB official, only 6% of power generation is using diesel while gas is supplied on a long-term basis by Petronas to Sesco at a concession rate. Sarawak produces oil and gas, mainly for the export market and the special arrangements on concession rates on gas are in recognition of Sarawak's important role in the national economy.
Definite impact
Sarawak government officials said the difference in power rates in Sarawak is inevitable because of what they call 'the lack of economy of scale' - with the same or higher cost of power installations, distribution and transmission to homes, factories and offices over a much wider geographical area and much smaller population.
There are about 400,000 consumers in Sarawak.
On the other hand, in the peninsula with an estimated population of 20 million, TNB has a bigger consumer base and a much higher demand of about 12,000 MW.
An UK-trained accountant LP Voong told malaysiakini that the high excess capacity has a definite impact on the higher power tariffs in Sarawak.
"What will happen when Bakun comes on stream in 2009? Is the power going to go directly to certain energy-demanding industries like the proposed aluminum smelter plant in Bintulu? Will some of the power generated in Bakun go into the State Grid?"
"While it may mean that industries will find ever-ready power, even more important is the cost factor that prospective consumers will have to consider and whether it is still competitive with any of the other states in the federation," he added.
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