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Thursday, October 16, 2008

election talk

From today's The Star:
Bring down power tariffs, Tenaga urged

PETALING JAYA: Tenaga Nasional Berhad has been urged to lower electricity charges in tandem with the drop in fuel prices.

In welcoming the Prime Minister’s announcement on lower fuel prices, MCA central committee member Wong Nai Chee urged TNB to reduce its rates by 14.8% as the petrol price had further come down from RM2.45 to RM2.30 a litre.

"Since TNB is one of the government-linked companies involved in the national privatisation project, it should provide good services to the public with reasonable charges," he said in a statement yesterday.

"If TNB is not willing to lower its electricity charges, the Government should consider liberalising the market," he added.

And further quotes from the actual press statement:

MCA Wong Nai Chee: "Government should consider liberalizing the electric industry"

....

Sdr Wong Nai Chee who is a member of MCA’s Central Committee said, “compared to June 14, 2008 when fuel prices were increased to RM 2.70 per litre, yesterday, the government reduced the fuel prices to RM 2.30 per litre. This shows that fuel prices have dropped by 14.8%. Therefore, it is appropriate that Tenaga Nasional Berhad (TNB) should also lower its electric charges in tandem.”

While MCA welcomes the government’s commitment to fulfill its pledges based on the international market crude oil prices and adjust domestic fuel prices accordingly, Nai Chee pointed out that there was also a hike in TNB charges owing to the spike in crude oil prices in June 2008. “Since, fuel prices have currently decreased, therefore, TNB ought to lessen its electricity charges.”

....

As TNB is seen as monopolising the entire electricity market in West Malaysia, Nai Chee then suggested that, "if TNB is not willing to decrease its electricity charges, the government should reveal TNB’s monopoly of the electric industry and take into consideration the liberalization of the electric market. Let other competitors participate in electric field, and enable these independent power producers (IPP) to compete with TNB."



Dood, either you are seriously ignorant and hence have no business being a politician and so-called 'serving the people' or you are taking a leaf out of the Anwar Ibrahim book of crapby talking rubbish in order to gain popularity.

Firstly, if you didn't pay attention in Science classes in school, our power plants do not run on petrol or diesel. In fact, you would be hard pressed to find power plants anywhere in the world that run on either. The majority of our power plants run on natural gas, with a further sizeable amount running on coal. And while the global crude oil price does affect the price of natural gas, the prices are irrelevant when compared to petrol prices in Malaysia.

In any case, natural gas price on the NYMEX is currently around RM22 per million British Thermal Units (mmBTU) while the power industry only pays RM14.31 per mmBTU. Quite a sizeable subsidy won't you agree?

And secondly, asking the IPPs to compete with TNB is laughable to say the least, and comical at best. But sadly, there is nothing funny about our politicians' ignorance on one of the biggest leeches in our economy. The IPPs are leeching off TNB (and Petronas) by getting cheap gas and having the right to sell all the power generated to TNB, no matter how inefficient their plants are and no matter if there is any demand. He makes it seem as if the IPPs are at a disadvantage here, when they are in fact the beneficiaries of this ridiculous system.

I know it is election time and everybody feels the need to say something popular to gain attention and put themselves in the spot light. But when you end up talking out of your butt, best you keep quiet in the first place.

Labels:


Ramblings:
yes, stupid politicians should keep quiet, but ppl who dont check the facts and choose to believe should get their arse kick as well.
 



ugly truth or pleasant promises?

we'd choose the candy, anytime.

can't blame the general public. most of us are either ignorant or apathetic anyway. if it sounds good, we'll take it.

 



I just saw a column on the same stuff in the papers.. has someone been plagiarising your blog?

I suppose the 'plagiarise' me campaign might be working...

Or

I didn't read the paper properly and the dude was completely disagreeing with you...

 



k3ng: Where was this?
 



somewhere in the star... some dude was rambling about IPPs as well.. I'll see if I still have the paper.
 



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