MP: Justify higher electricity surcharge
The government must justify the increased electricity surcharge on consumers intended for funding the implementation of renewable energy even though its roll out has been poor, Serdang MP Ong Kian Ming said.
The government must justify the increased electricity surcharge on consumers intended for funding the implementation of renewable energy even though its roll out has been poor, Serdang MP Ong Kian Ming said.
"Seda (Sustainable Energy Development Authority) has only managed to commission 56 percent of the (renewable energy) quota distributed in 2012 and 2013 but yet it has asked for the contribution to the Renewable Energy (RE) Fund to be increased from one percent to 1.6 percent starting in 2014," he added in a statement today.
Under the Feed-in Tariff (FiT) Scheme, applicants can apply to generate renewable energy from Seda's RE quota and the energy generated will be channelled back into the national grid and paid for by Tenaga Nasional Berhad with subsidy from the RE fund.
Consumers who use more than 300kWh of electricity which is equivalent to RM77, will have to pay 1.6 percent more of their total bill for the RE fund.
Citing Seda's 2012 annual report, Ong pointed out the authority approved a capacity of 183.41 MW in 2012 and 144.18 MW for 2013 under the FiT scheme, totalling 327.59 MW.
"Unfortunately, as of April 17, 2014, only 100.71 MW was installed for 2012 and 83.41MW was installed for 2013 giving a total of 184.12MW for 2012 and 2013," he said.
"This means that only 56 percent (184MW out of 328MW) of the quota for 2012 and 2013 has been successfully installed," he said.
Furthermore, Ong said as of today, only 0.27MW was installed out of the 101MW allocated for 2014, representing a "pitiful" 0.3 percent.
Ong pointed out that Seda's assets have increased from RM330 million in 2011 to RM561 million in 2012, a 70 percent increase.
"The increase in the RE fund in 2014 surcharge will only add to the cash reserves of Seda without increasing Seda's ability to achieve its installation targets.
"Seda needs to explain its poor performance and justify why consumers need to contribute more to the RE fund in 2014 and beyond in light of this performance," he said.


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