Why tariff review is NECESSARY?
Cost of supplying electricity has increased since the last tariff review. Most of the cost of supplying electricity has increased beyond TNB’s control. To ensure sustainable electricity supply reliability:
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Large capital expenditure is required to maintain and enhance electricity supply infrastructure - Benefits from operational efficiency alone is insufficient to support the demand growth for electricity
- A reliable electricity supply system is a prerequisite for the nation’s economic growth.
- Low tariff leads to inefficient use of electricity and national resources.
Basically, TNB have to supply more power based on demand expansion from industrialization. TNB also have to curb or control domestic demand to overcome demand variable, which led to further infrastructure expansion requirement.
TNB have to generate electricity based on highest expected demand. Failure to do so will led to power overload and tripped the system. Power production is the key running cost and excess power supplied is deemed inefficient, as the power can’t be stored at high scale.
Domestically, TNB should first evaluate multi usage tariff systems. 200kWh usage that consumer enjoys lower tariff is not sufficient to cater daily basic requirement. TNB is saying otherwise as air conditioning is considered luxury even in a nation with over 30 degrees Celsius ambient temperature climate. This is absurd.
To move forward and benefit both party (TNB (Government) and domestic consumer), serious consideration of expanding the lower tariff usage quota is needed. Basic requirement list require expansion and ‘home business’ element need to be considered at our cost of living increase situation.
Secondly, TNB need to consider alternate charging. In industrial rate, there are peak and off-peak rate applies. Such application needs to be expanded for domestic consumers to benefit both parties. To have off peak rate will promote usage during off-peak and reduce excess electricity loss for TNB. Consumer will eventually limit A/C usage to off-peak period and so are other domestic electrical appliances such washing machine, rice cooker, kettle, iron and the list would go on.
Consumer shall not be burden of the requirement expansion from industrial and business requirement that give government direct benefits from tax revenues. Instead, a smarter system needs to be in place for the public to enjoy benefits from government enrichment.
Dam approach for electricity generation however should be less sensitive of variable output rate. Dam generate electricity from water flow that directly revolute the turbine and generate electricity. There are long start up procedure and cost for typical oil, gas or coal power plant that involve hours heating and priming before electricity to be generated. With vast rainfall per year in Malaysia, it would be the best long-term sustainable approach for electricity generation with lowest possible operational cost.
There is also other alternative worth pursuing such wind turbine. Detail study required on the wind pattern to see if the location fit for the application requirement. To have wind turbine on inshore area would benefit not only sustainable energy production but also provide a protective habitat for marine life thus boost marine output yield.
Even nuclear reactor seems reasonable to move forward to with quite substantial savings on the long term, the active material cost would escalate through time due to limited supply with expansion demand world wide. It would potentially be similar to NGV application now which is fairly cost effective to have NGV vehicle but eventually the NGV cost will go up and cost advantage would become insufficient.
Since TNB profitability is very biased to shareholders benefit only while losses are a subject for government protection, we as the aware public must look into curbing TNB wastage for our benefits.
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