Sarawak DAP today accused the Barisan Nasional state government of giving special treatment to foreign investors at the expense of their local counter-parts where the state’s electricity tariffs are concerened.

Such treatment will give foreign companies a special discount of between RM200 million and RM1 billion per year when their electricity tariffs are between 10.5 sen and 15.5 sen per kWH as compared with 30 sen per KWH for local industries.

"Sarawak DAP condemns the Barisan National state Government for discriminating against local entrepreneurs, businessmen and consumers," said its state chief Chong Chieng Jen ( left ).

He then questioned why  local  businesses and entrepreneurs have to pay so much for power supply.

"After all, they also provide employment for the people."

Chong, who is the MP for Bandar Kuching and Kota Sentosa assemblyperson, was referring to a statement made by Deputy Chief Minister Alfred Jabu that Sarawak offered competitive power

supply to foreign investors.

He made the statement at a business forum in Prague, the Czech Republic on Monday.

Comparison of rates

According to Jabu, two smelting plants,which have started operations in the Sarawak Corridor of Renewal Energy (Score) are already enjoying very cheap electricity tariffs. They are Tokuyama and Press Metal.

Under the Agreement between Sarawak Electricity Supply Corporation (Sesco)  and Tokuyama, Sesco sells 140MW electricity to Tokuyama at a mere RM0.115 per kWH with the rate fixed for a 10- year period while local businesses, factories and industries are paying an average of 30 sen per kWH.

"Its annual discount is RM200 million in tariff charges to Tokuyama. In 10 years, that is a whooping RM2 billion discount," said Chong.

"For Press Metal, Sesco sells 600 MW of electricity at the rate of 10.5 sen per kWH (though Sesco is entitled to raise it by 6 percent every four months).

"Comparing this tariff rate with the average tariff of 30 sen per kWH that we locals are paying, it is a discount of RM1billion per year," he said.

He said: "DAP is not objecting to providing cheap electricity to attract foreign investments.

"What we object to is why the tariffs that the locals are paying are so much higher  than the tariffs paid by those foreign investors.

Level playing field demand

"If SESCO can afford to offer such cheap tariff rates to these foreign investors, there is no reason why Sesco cannot afford to reduce electricity tariffs for all Sarawakians.”

He added that while the locals pay heavily for their power supply, the foreigners get theirs cheaply.

This is a form of  cross-subsidy from the locals for the benefit of these foreign investors."This is most unfair to us," said Chong.

He said that the government's argument about these foreign investments creating jobs in Sarawak cannot also justify such a huge discount for these foreign investors.

Since local factories and businesses also create jobs, why should they pay more for their supply, he said.

He added: "As such, there is every reason and justification for the DAP to go on a signature campaign, calling for the electricity tariff to be reduced  by 30 percent.

"Our signature campaign calling for the 30 percent reduction in tariffs will last for three months till April 30, 2014."And we have targeted100,000 signatures state-wide. 

"Upon its conclusion, we will present the signed forms in Dewan Undangan Negeri during the May sitting," he said, reminding the BN leaders that they are elected by the people.

"Thus they should formulate policy ‘for the people'."