KUCHING, Oct 21, 2014: Sarawak DAP chairman Chong Chieng
Jen stressed today there is no need for the State government to wait for the
increase in the oil and gas royalties from Petronas before it can reduce
electricity tariffs.
"SESCo (Syarikat Sesco Berhad) can afford the
reduction of electricity tariffs," he said in a statement when commenting
on a pledge by Chief Minister Adenan Satem that the State government would
reduce water and electricity tariffs if it succeeded in getting Petronas to
raise the oil and gas royalties for Sarawak.
The State government is negotiating with the national oil
corporation to raise the royalties from the present 5% to 20%. In May this
year, the State Assembly adopted a resolution calling on Petronas to up the
royalties.
Adenan, speaking at a gathering organised by the Federation of Orang Ulu
Association Malaysia (Forum) in Miri Saturday night, said he wanted to increase the State’s
revenue, and that was why he wanted the oil and gas royalties to be increased.
“Where do the gas and oil come from, if not from Sarawak?"
he asked.
“I am negotiating with Petronas, and (the royalty hikes)
could be in the form of royalty, contract, manpower, expertise or corporate
social responsibility.
“If we make more money from Petronas through the oil and
gas industry, I can reduce your electricity and water bills,” the chief
minister pledged.
Chong, responding to Adenan's pledge, said:"It is
the position of DAP Sarawak that the reduction of electricity tariffs need not
and should not be conditional upon the State getting an increase of oil and gas
royalties because of the simple fact that SESCo can afford it.
"Our call for the reduction in electricity tariffs
is based solely on the ability and profitability study of SESCo to reduce the
tariff.
"In the financial year ended Dec 31, 2013, SESCo generated a revenue of
RM2,312 million and made a pre-tax profit of RM408.5 million," Chong, who
is also Bandar Kuching MP, pointed out.
He said that at present the normal electricity consumers are
paying the tariffs on an average of RM0.30 per KwH and that they include those
who are paying domestic, commercial or industrial tariffs.
He added that the special consumers, like the smelting
plants in Samalaju, Bintulu, are paying
tariff rates that are separately negotiated and agreed under separate
agreements.
"Their tariff rates, which were kept as secrets by
SESCo, are lower than those paid by the normal consumers," he said.
Chong said that in the financial year 2013, about 30% of
the revenue of SESCo came from these special consumers while for the financial
year 2014, at least 40% of the SESCo’s revenue will come from these special consumers
under special contracts for the supply of electricity.
He added:"It is the projection of the Sarawak
government, as stated by Minister of Public Utilities Awang Tengah Ali Hasan in the recent State
Assembly sitting, that the committed electricity demands would increase by at
least 25% from year 2013 to 2014.
"Out of this increase, 90% will be for the sale of
electricity pursuant to the special contracts with the industries in SCORE
(Sarawak Corridor of Renewable Energy) areas," he said.
He added that the Sarawak DAP’s campaign calling for
reduction of electricity tariffs is only in respect of the tariffs paid by the
normal customers of SESCO, including domestic, commercial and industrial consumers.
He said that the proposed reduction would only involve
the revenue from SESCo’s normal consumers, without affecting the contractual
rates under the special contracts with the special consumers.
"Based on some simple mathematics calculation, it is
obvious that a 30% reduction of the electricity tariffs for the normal consumers will not cause any loss to SESCo.
"Therefore, there is absolutely no need for the
State government to rely on the increase in oil and gas royalties to lower the
electricity tariffs in the State," he asserted.
Chong urged the State Government not to find excuses to
delay the lowering of the electricity tariffs in Sarawak, saying:'' In light of
the escalating costs of living, the State Government should lower the tariffs
to help ease the financial burden of the people, especially when it can afford."
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