Every time the government tries to justify the removal of subsidy for energy related sectors, there is always two sides of the story. The fact is energy resources are depleting fast with 2.3 percent consumption growth per annum globally.

This is adding stress to limited resources such as fossil fuel as well as nuclear fuel. According to the Energy Information Administration, in 2007, the world was consuming up to 86.4% fossil fuel as the primary energy followed by 8.5% by nuclear energy, 6.3% by hydroelectric and 0.9% by other renewable energy resources.

Such high dependence on limited resources is similar to filling up the whole world’s future in a falling glass cup.

There are other justifications for the removal of subsidy such as reallocating the funds for better infrastructure and socio-economic sectors. The government has to be transparent to ensure people can see the actual utilisation of subsidy for such purposes. This will create a transparent government as well as building mutual understanding with the rakyat.

However, the core issue is that the nation’s growth will be crippled if we could not obtain secured energy resources. How do we ensure energy security in Malaysia when we are going to be net importer of energy resources way before 2020?

Firstly, utilisation of energy resources must be efficient from the first level of conversion until the end consumption. This is vital because, according to International Energy Agency, 48% of energy resources are wasted in its journey to meet end users. Now, that’s a huge wastage.

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Secondly, in the transition period of reaching market price, Malaysia must be able to meet the uncertain market fuel price. An Energy Price Stabilisation Fund must be formed. This will help Malaysia to cushion immediate price fluctuations.

Wecam has addressed this in the National Energy Consultative Council. This fund is not a form of subsidy, but a cushion that can help commercial, industrial and domestic consumers cope with actual market pricing in short period of time.

Thirdly, unification of all energy related administration, policy, and enforcement under one agency. All energy resources and utilisation related sectors must be placed under Ministry of Energy, Green Technology and Water for policy and administration.

Subsequently, the Energy Commission must be the enforcing agency that operates independently under the ministry. Merger will reflect efficiency in all utilisation sectors.

Wecam hopes that Malaysians of all levels have more discussion to get a clearer picture of energy demand and supply issues. Through this, we can clear up many doubts that are clouding the issue of subsidy for energy. A nation without energy security will be suppressed of development.

The writer is secretary-general, Water and Energy Consumer Association of Malaysia (Wecam).