KUALA LUMPUR, Dec 26 — Maintaining the current electricity tariffs until the end of 2020 could signify that the government is expecting a downward trend in fuel prices soon, said an economist.
Yeah Kim Leng called the move ‘bold’ but said the announcement of no tariff hike for the next few years indicated the government’s confidence of its fuel price trend projection.
“I can safely assume that the government is projecting a reduction and downward trend in fuel prices for gas and coal.
“This is the key input. If this continues, there can be a lot of cost saving for the people, even with the volatility of fuel prices...it is a bold statement,” he told Malay Mail today.
Yeah said the news would undoubtedly provide comfort for consumers as the living cost continues to increase over the years.
“Bigger households, especially, would benefit from this,” he said.
Opposition MPs said the move was not a sustainable solution in the long run, adding that there was always the possibility that the decision could be reversed.
Klang MP Charles Santiago said while the move is welcomed, it would cost the government a lot to continue doling out subsidies.
He said that the government and Tenaga Nasional Berhad (TNB) should be more proactive in conducting awareness programmes that could create a more energy-savvy Malaysia.
“Clearly people would welcome this move, especially those running businesses but this means the money used to subsidise the electricity still comes from the rakyat’s pockets.
“Instead, agencies should work together to educate the public on the importance of practising energy-efficient habits. The more energy savvy they are, the less they would be spending regardless of the tariff,” he told Malay Mail.
He added the government needs to find ways to replace the use of fossil fuel as the main source of energy with renewable energy, as practised in other countries including Germany.
“In Germany, currently 30 per cent of the total energy are produced by the consumers and this can be used for their own household and sold to the greater community.
“Sustainable Energy Development Authority Malaysia (SEDA Malaysia) needs to ensure Malaysians catch up to this system,” he said.
Segambut MP Lim Lip Eng said he believes the announcement would be welcomed by the general public with open arms as it strikes a chord with the financial struggles people face on a daily basis.
He, however, reminded the public that the current tariff may not be set in stone, after all, should there be a new decision made by the Cabinet before 2020.
“Whether it is pre-election ‘goodies’ or not, people would of course welcome this.
“But there is still no guarantee that this Cabinet’s decision cannot be ‘overruled’ by another Cabinet’s decision before the timeframe given is up,” he said.
