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NATIONAL ENERGY SECURITY SURVEY: TARIFF STRUCTURE AND FUEL COST TRANSPARENCY

PRESS RELEASE - 10 DECEMBER 2015 (THURSDAY)

NATIONAL ENERGY SECURITY SURVEY: TARIFF STRUCTURE AND FUEL COST TRANSPARENCY

Association of Water and Energy Research Malaysia (AWER) would like to reiterate the importance of transparency in electricity tariff structure and fuel cost pricing. The piped gas is priced at RM 15.20 per mmBTU for the electricity tariff setting period of 1st January 2014 to 31st December 2017. Now, the government has decided to increase piped gas price for electricity generation by RM 3.00 per mmBTU to reach RM 18.20 per mmBTU effective from 1st January 2016. This will incur additional RM 560 million fuel cost to electricity tariff for a 6 months period (January 2016 - Jun 2016). Unfortunately, Ministry of Energy, Green Technology and Water (KeTTHA) and Energy Commission have not shown any cost component breakdown for both piped gas and liquefied natural gas (LNG) till date.

WHAT DO MALAYSIANS FEEL ABOUT ELECTRICITY TARIFF AND FUEL PRICES?

AWER has carried out National Energy Security Survey (NESS) to establish a baseline data on energy related issues. The sampling frame used for the survey is from the National Household Sampling Frame (NHSF) which is made up of Enumeration Blocks (EBs) created for the 2010 National Population and Housing Census. The sampling was developed by Department of Statistics Malaysia.

When we asked if the respondents would like to know how electricity tariff and fuel cost is determined by the government, 69.94% of Malaysian would like to know how electricity tariff and fuel cost is determined. The balance 30.06% Malaysians do not want to know how electricity tariff and fuel cost is determined. Kuala Lumpur recorded the highest percentage (87.83%) of Malaysians wanting to know the details. This is followed by Selangor (85.20%) and Pulau Pinang (82.89%). Table 1 shows state based response.

When we asked the respondents if they opined that the government is transparent in determining the electricity tariff and fuel cost, only 26.13% Malaysians opined that the government is transparent in determining the electricity tariff and fuel cost. A majority of 73.87% of Malaysians opined that the government is NOT transparent in determining the electricity tariff and fuel cost. Kuala Lumpur records highest percentage (89.47%) of Malaysians opined that the government is not transparent in determining the electricity tariff and fuel cost. This is followed by Selangor (88.82%) and Pulau Pinang (85.53%). Table 2 shows the state based response.

Table 1: Percentage of Malaysian Wanting to Know How Electricity Tariff and Fuel Cost is Determined
 

State Want to know Do not want to know
Johor 73.03% 26.97%
Kuala Lumpur 87.83% 12.17%
Kedah 59.87% 40.13%
Kelantan 72.70% 27.30%
Labuan 65.79% 34.21%
Malacca 76.64% 23.36%
Negeri Sembilan 75.33% 24.67%
Pulau Pinang 82.89% 17.11%
Pahang 56.91% 43.09%
Perak 67.11% 32.89%
Perlis 60.86% 39.14%
Putrajaya 75.99% 24.01%
Sabah 59.54% 40.46%
Sarawak 57.57% 42.43%
Selangor 85.20% 14.80%
Terengganu 61.84% 38.16%
National 69.94% 30.06%

 

Table 2: Percentage of Malaysians' Opinion on Government's Transparency on How Electricity Tariff and Fuel Cost is Determined

State Transparent Not transparent
Johor 22.04% 77.96%
Kuala Lumpur 10.53% 89.47%
Kedah 36.18% 63.82%
Kelantan 24.67% 75.33%
Labuan 25.99% 74.01%
Melaka 20.72% 79.28%
Negeri Sembilan 14.80% 85.20%
Pulau Pinang 14.47% 85.53%
Pahang 42.43% 57.57%
Perak 29.28% 70.72%
Perlis 35.20% 64.80%
Putrajaya 20.72% 79.28%
Sabah 35.53% 64.47%
Sarawak 39.80% 60.20%
Selangor 11.18% 88.82%
Terengganu 34.54% 65.46%
National 26.13% 73.87%

 

The silence from KeTTHA and Energy Commission with regards to piped gas and LNG detailed cost breakdown is well known within the industry. Based on the NESS survey data, it is evident that Malaysians are seeking more information and transparency on how prices are fixed for electricity and fuel cost. We urge the Members of Parliament to carry out their duty to ensure KeTTHA and Energy Commission are transparent on how prices are fixed for electricity and fuel cost for the benefit of the nation and the people.

Piarapakaran S.
President
Association of Water and Energy Research Malaysia (AWER)

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 
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