'15pc power tariff hike not justifiable'

The Federation of Malaysian Manufacturers (FMM) Sabah feels that the 15
per cent increase in the state's electricity tariff is not justifiable.

The
FMM Sabah in a statement today said it was most concerned over the
recent announcement by the Minister of Energy, Green Technology and
Water, Datuk Peter Chin Fah Kui of a 3.75 sen/kWh increase in
electricity tariffs in Sabah.

The justification for the increase
in tariffs for Sabah and Labuan was to prevent the Sabah Electricity
Sdn Bhd (SESB), a Tenaga Nasional Berhad subsidiary, from incurring
further losses and to be in line with the fuel price increase.

"In
recent years, industries in Sabah have suffered power outages and
disruption coupled with insufficient supply and have yet to receive
compensation.





"There has yet to be significant improvements in the quality of supply
of power but the industry is already being taxed with higher electricity
tariffs.

"The SESB is obligated to provide its customers with quality and
uninterrupted electricity supply," the FMM Sabah said.

It
also called for a thorough cost impact study on industrial consumers
arising from the tariff increase, in addition to losses suffered from
the poor quality and inadequate power supply.

The FMM Sabah is
strongly of the view that the state government should set up a high
powered energy committee, comprising representatives from the relevant
government agencies and industry, to address the problems of poor
quality and
inadequate power supply. -- Bernama