Oil prices are down and kudos to the Malaysian Government for lowering the price of petrol to match the drop in the price. I am sure for many, it has been a welcome loosen of the ever tightening belt over our finances.
However, what followed is not necessary much appreciated. The Goverment then made a call to all in the retail business to reduce their prices. Yeah, it seems to be a logical move since the spiralling of food prices and consumable items have been attributed to the rising cost of fuel. But really, should the Government have made such a call to the rakyat of Malaysia? Or is it simply a case of Do as I Ask and Not As I Do? Whatever do you mean, McFish? Pray explain yourself.
Being the "kay-poh" ( buzibodi) that I am, I went down to the street and spoke to many retailers and suppliers. "Hey, brother - now that the price of petrol has come down, we will be seeing cheaper goods, right?" Answer: "What cheaper goods? Suppliers are still raising prices!"
"But how can that be? Prices should be coming down." He replied, "Yeah, price of petrol is down but what about the price of electricity? The Government says that it has gone up 12% but do you know that collectively, the price of electricity is now actually 40% above your previous usage. It is 12% of each stage of usage - so the cummulative effect is definitely much higher than 12%"
"The Government lowers the cost of petrol, that means that TNB is now enjoying lower cost but does TNB lower the rates of electricity? No! So the prices just cannot come down, no way, no how?"
Now, is this retailer speaking gospel truth? To counter-check his claims, I spoke to the TNB meter reader who came a calling recently to issue the monthly bill. "Hey, Encik, is it true that the cummulative effect of a bill is actually a 40% increase and not 12% as the Government has told us?" His reply, "Ya. My house bill previously was RM100 and since the increase, I now pay Rm140.00"
So, there is where the fishy business lies! Our Pakatan Rakyat and Opposition leaders are said to defend the people but yet, in this obviously blatant matter, surprisingly they have kept really quiet. I am surprised that they have not risen to the occasions and harped on this issue. I am sure that many of the rakyat, would back them up since a reduction in the electric rates, that really help the average wage earner, the retailers and most of all, the SMEs who depend on TNB to power up their manufacturing and processing factories.
It does no good to ask the rakyat to lower prices, when the Government will not set the example for us. Yes, they have done well to reduce the price of fuel and thereby lower one of the elements that have sent prices of goods and consumables skyrocketing. Yet, if other major contributing elements - like TNB, who now gain from the reduction in petrol price will not lower their rates, then don't ask the rakyat to take the first step. Otherwise, the Government is not "walking the talk"
Somehow, in my opinion ( you may choose to defer), rather than cutting down the employee's portion of contribution to EPF (which is a form of savings ), the Government should cut down the cost of utilities for the rakyat. The lowering of the cost of utility rates will directly cause an immediate effect of raising spending income. One does not need to be a Math genius to see that lower costs will increase household income.
However, to lower savings such as EPF is merely a short-term resolution; long-term, it is not beneficial for the rakyat. After all, TNB is a "cash-rich cow" and now even richer what with lower petrol prices from the Government and higher rates to the rakyat.
So, is there hope for the rakyat? Perhaps for the consumer, but you know, for the retailers and suppliers, the profit margin is barely there. They are squeezed from both sides - to lower retail prices and to pay high electric rates. Will this help us to increase spending and boost the flagging economy? Personally, I have no confidence that it will go far. There may be a slight increase but it will be short-lived.
Overall effect, would be a slight movement for the better in the shortrun and in the long run, not beneficial. So, Barisan component parties or Pakatan Rakyat - open your eyes and push for the rakyat. We want cheaper electricity! Yeah!
McFish
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2 comments:
As you probably aware, our petrol is subsidised. I don't think TNB gets this kind of subsidy from the government, therefore the energy price does not correspond to the drop in petrol price. However there were some effort to cushion the higher electricity rate burden for the poor. If I remember correctly only household that consumes less than 100kwH gets the benefits.
Dear Richard,
Sorry that this reply has taken so long.
I am not sure that TNB does not get any subsidy but one thing I do know is this. Since January 1, 2008, TNB has added an additional charge feature to the bills of all commercial users of energy. It is known as the power factor charge. If your power factor falls below 0.8 - then, the commercial user will be charged a penalty based on a scale rate.
The further the power factor is from the 0.8, the higher the rate. As it is, with a power factor of .75, the penalty is RM250.00 and for a power factor of 0.7, the penalty is RM400.00.
This extra loading is actually quite high because it takes only a company that incurs RM800.00 per month to be subjected to the power factor penalty.
Households are not really affected but the retailers are by the addtional charge. Remember, the call to reduce prices is made to all retailers, just because the fuel prices are on the way down.
Retailers may save on certain transport costs but their energy costs are much much higher than before. One retailer has complained the with the new TNB rates, his energy bill is now double. It was Rm1,000 and now with the new rates and power factor penalty, it is RM2,000.
Hope this explains where I am coming from. Thanks for your comment.
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