KUCHING: State DAP has urged the state government not to find excuses to delay the lowering of the electricity tariff in light of the escalating costs of living.
Its chairman Chong Chieng Jen said the reduction of electricity tariff “need not and should not be conditional upon Sarawak getting an increase of oil and gas royalty because of the simple fact that Sesco can afford it.”
“Our call for the reduction in electricity tariff is based solely on the ability and profitability study of Sesco to reduce the tariff. In the financial year ended Dec 31, 2013, Sesco generated a revenue of RM2,312 million and made a pre-tax profit of RM408.5 million,” he said in a press statement on
Wednesday in response to Chief Minister Datuk Patinggi Tan Sri Adenan Satem’s remark, that if Sarawak succeeded in getting Petronas to increase the oil and gas royalty, the state government would reduce the water and electricity tariffs.
Chong pointed out Sesco had two main categories of customers – domestic users who paid the tariff of an average of 30 sen per KwH and special customers who paid tariff rates that were separately negotiated and agreed under separate agreements.
He said the special tariff rates were kept as secrets by Sesco while adding: “Tokuyama is paying a tariff of only RM0.11 per KwH and Press Metal is only paying a tariff of RM0.105 per KwH.”
Last year alone, he said about 30 per cent of the revenue of Sesco came from these special customers.
He also predicted, for this year, at least 40 per cent of Sesco’s revenue would come from these special
customers under special contracts for the supply of electricity.
He said the state government had projected a 25 per cent increase of the committed electricity demand from 1,490MW in 2012 to 3,517MW in 2016.
Out of this increase, he said 90 per cent would be for the sale of electricity pursuant to the special contracts with the industries in SCORE.
“Our DAP’s campaign calling for reduction of electricity tariff is only in respect of the tariff paid by the normal customers of Sesco (including domestic, commercial and industrial tariff). It will only reduce
that part of the revenue from Sesco’s normal customers, without affecting the contractual rates under the special contracts with Sesco’s special customers.
“Based on the figures above and some simple mathematics calculation, it is obvious that a 30 per cent reduction of the electricity tariff for the normal customers of Sesco (including domestic, commercial and industrial users) in Sarawak will not cause any loss to Sesco.
“Therefore, there is absolutely no need for the state government to rely on the increase in oil and gas
royalty to lower the electricity tariffs in the state. The state government should lower the tariffs to help ease the financial burden of the people, especially when it can afford.”