When will the milking stop?

Sustainable Energy Development Authority gets approval for additional 1% levy to RE fund

By Leong Hung Yee
hungyee@thestar.com.my

PUTRAJAYA: Sustainable Energy Development Authority (Seda) has received the approval for an additional 1% levy to the renewable energy (RE) fund on top of the current 1% in electricity bills that will double up the fund size.

“We've already received the 2% approval but it remains in the Government hands to increase the 1%. I can't tell either when will it happen,” CEO Badriyah Abdul Malek said after Malakoff Corp Bhd's 4th Energy Expert Series yesterday.

Currently, consumers in Peninsular Malaysia who use more than 300kWh a month are paying 1% levy, called feed-in-tarriff (FiT), to independent RE power producers. When implemented, the same group of consumers will have to pay 2% for FiT.

Badriyah: ‘Tariff is a very much political thing.’

“Tariff is a very much political thing in Malaysia. The Government will have to decided when the tariff will be increased. We were supposed to get a tariff revision every six months but there was no such announcement last December and the next revision will be in June. And with the imminent general election we don't think it will be (revised),” Badriyah said.

The current 1% levy to cover costs associated with the FiT scheme translates to about RM300mil per annum. To kick-start the FiT, Seda had been given a grant of RM189mil. Grant means no need to pay back.

Earlier, chief operating officer Ali Askar Sher Mohamad proposed independent power producers and utility companies to contribute a small portion of their profits to the RE fund.

He said Seda was expecting the first payment from Tenaga Nasional Bhdfor the fund, latest by April 1.

Degression rate where FiT rates decrease annually for each renewable energy resource, with the exception of small hydropower installations, is set to kick in next year.

Badriyah said Seda was prepared to raise the degression rate if the study showed it was higher than the initial annual degression rate of 8%.

Ali Askar said the degression rate, however, would not affect current players as it would only be applicable for new applications.

As at Feb 29, Seda has approved 377 applications for RE with installed capacity of 311.56MW. Of the amount, 140.03MW installed capacity was from solar photovoltaic (PV).

Solar PV has received tremendous applications but biogas and biomass have not been as popular. Ali Askar said there were lots of interest in biomass but no one had really submitted a concrete proposal. “There's a great interest in landfill has but no takers for palm oil mill effluent (POME) due to small capacity and grid connection issues,” he said, adding that hydro projects were also facing some challenges as there were delays in getting state approval.

Badriyah said currently there were about 430MW private palm millers which were off-grid. She said Seda had been engaging with millers and the relevant body for palm industry to encourage them to get into FiT.

“They (palm millers) are not interested. They are just happy with the high crude palm oil prices and that connecting to the grid will probably give them a big headache,” she said.

Meanwhile, Badriyah said the FiT in Sabah has been suspended except for Small Renewable Energy Power Programme projects which reached commercial operation date by Dec 31, 2011.

She said currently only consumers in Peninsular was contributing a 1% to the RE fund.

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Another 1% will be added to the already 1% up in electricity bills.

The authorities are sucking us dry.

Please download or copy petition and send it back to me before 15th April 2012, if you are against the rising cost to your electricity bills.  We cannot allow this to continue further.  My address is 25 Jalan Belangkas, Off Kg Pandan 55100 Kuala Lumpur.  Do it before the 13th General Election.  Once election is over, the present ruling government will NOT ENTERTAIN US ANYMORE.

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YB Dato’ Sri Peter Chin Fah Kui,

Minister of Energy, Green Technology and Water,

Dear Dato’ Sri,

Your reference MTTHA/014.1.4

I received your reply dated 14^th February 2012.

Till today I am still victimized by TNB out of 400 shop lots in Jalan Belangkas/Jalan Kg Pandan.  Since TNB and your kind officers came to check on my meter, the reading is going up and up like there is no tomorrow. Yet I am supposed to act naïve and pay up like a fool.

I am seriously thinking of suing TNB after my petition goes up to Agong on the 15^th April 2012.  I do not think TNB and your office understand the seriousness of this matter.

My complaints were and still are –

1.                 Even with holidays my electricity bill is up.

2.                 Why am I the only one out of 400 shop lots in Jalan Belangkas/ Jalan Kg Pandan being charge for Faktor Kuasa?

3.                 The alternate month estimation is more than double charge, which should not have happened.

4.                 Why is your office and TNB reluctant to check the other meters in Jalan Belangkas/Jalan Kg Pandan?

5.                 After my complaints only two others in Jalan Belangkas Jalan/Kg Pandan had their meters change, even though TNB officers said they are going to change the rest similar to mine?

6.                 Why shop lots in Jalan Belangkas/Jalan Kg Pandan using more electricity than me still being charge 50% LESS.

7.                 Why is my son’s business being victimized by TNB and when will this stop?

Would appreciate if your kind office can arrange a meeting where I can meet everyone to solve this matter. I am not interested in technical terms and know how from TNB and your kind office, I just want common sense answers that can justify high billing, sole victim of Faktor Kuasa and why others using more electricity are paying less. That is all. Till today everyone is not giving me the right answers except going round and round the bush.

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 Datuk Seri Che Khalib Mohamad Noh,

President and Chief Executive Officer,

Tenaga Nasional Berhad,

129 Jalan Bangsar.

59200 Kuala Lumpur.

Dear Datuk Seri,

Enclose herewith is my letter to the Minister of Energy.

My complaint has already been sent to you last year and this is a follow up to the same matter.

I would appreciate if Datuk Seri can take the trouble to settle this matter before you leave since you were the one who started this alternate month estimation and usage factor which is solely profitable for TNB.

Your action has make a tremendous differences to my son’s business and can expect it to go bankrupt if it is allow to go on further.  I am seriously looking into taking a law suit against you personally for your idea.  So let us sit down to solve this matter amicably.

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YAB Dato’ Sri Mohd Najib bin Tun Haji Abdul Razak
Prime Minister of Malaysia
Office of the Prime Minister
Blok Utama, Bangunan Perdana Putra
Pusat Pentadbiran Kerajaan Persekutuan
62502 Putrajaya
MALAYSIA

YAB Dato’ Sri,

Enclose herewith are my letters to the Minister of Energy and CEO TNB.

I have already complaint to your kind office about my frustration and dilemma on the action of TNB which only victimized my son’s business out of 400 shop lots in the same row in Jalan Belangkas, Kuala Lumpur.

YAB Dato’ Sri, my son runs a small business which can ill afford to employ even a single worker, we minimize the usage of electricity at all times for the past eight years.  Now that a new meter has been installed, the billing per month is going up and up, plus low usage charge is forced down our throat.  From the letters you will understand my anger over the 7 listed.

YAB Dato’ Sri, your government has not given my son a single chance to make a decent living.  Yet you allow TNB to kill us.  This is simply not right.  How much more can we endure such loop sided way to continue to threaten our lives daily?

Can you please answer me?

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TO DEMAND FOR AN INDEPENDENT CALIBRATION OF ELECTRICITY METERS IN MALAYSIA.

ELECTRICITY METERS IN THE COUNTRY ARE BEING SUPPLIED BY TENAGA NASIONAL BERHAD, A GOVERNMENT LINKED COMPANY THAT DISTRIBUTE ELECTRICITY. TO ENSURE THAT THE EMPLOYEES COULD NOT MANIPULATE THE METERS AT THEIR WHIMS AND FANCIES