Many consumers were in for a rude shock when they received their May electricity bill as they were slapped with a hefty bill by Tenaga Nasional Bhd (TNB). According to reports, consumers have seen their electricity bill surging to as high as 600% a month during the movement control order (MC) period.
Sure, they probably consumed higher electricity during the MCO period as most had to stay at home. But weren’t Malaysians given discounts on TNB electricity bills for six months beginning April 1?
On March 27, discounts of 2% for domestic users and up to 15% discounts for selected businesses and industries for six months starting from April under the Prihatin programme.
Looks like such discounts were not enough to offset the higher usage by consumers. TNB had stated that usage in the residential sector surged between 20% and 50% as families stayed indoors and workers worked from home.
TNB had then clarified that the 600% increase in electricity bill was inaccurate and that the amount of the consumers’ bills for April, May and June increased by 120% per month. Still, this is a huge jump for consumers, especially during these challenging times.
TNB explained that since the MCO started, households have been receiving an estimated bill as their staff were not able to physically check the metres.
It said the bills that consumers received between February and May were estimated based on previous usage.
TNB has ceased the actual electricity meter readings and issuance of bills during the MCO period, with electricity bills calculated on averages based on the previous usage.
Although there are constraints during the MCO, TNB proceeded with billing and discounts during the period, with bills streamlined later according to actual electricity meter readings.
TNB explained the rates are prorated and should be cheaper than if it was not prorated. TNB said it was bound by the Energy Commission’s regulations and cannot calculate bills arbitrarily.
It is still puzzling how consumers are still getting insanely high bills. If calculations are based on an average of three months’ usage, surely the amount couldn’t have shown a huge jump.
Some consumers claimed that the method used by TNB was unfair, as everyone will breach the third tier of usage, which will be calculated at a much higher rate, causing the bill to increase substantially.
TNB needs to further clear the air as Malaysians seem to be blamed for not knowing how to calculate their bill properly.
In 2019, when consumers complained about their high electricity bills, the Pakatan Harapan-led government not only ensured TNB rectified the billing problem, but also fined TNB RM3.6 mil through the industry regulator, Energy Commission, for overcharging.
Now, many Malaysians are reeling from the impact of Covid-19 and may not be able to afford such high utility bills. What is the Perikatan Nasional government doing to help ease consumers’ burden?
Perhaps TNB can further help reduce tariffs by reducing its cost such as implementing a pay cut for its top management. According to TNB annual report 2019, its president/CEO Datuk Seri Amir Hamzah Azizan, who was appointed on April 2, 2019, takes home a total remuneration of RM1.7 mil while his predecessor, Datuk Seri Azman Mohd who resigned on Mar 31, 2019, was paid a total of RM7.8 mil (inclusive of RM5.4 mil emoluments). Overall, TNB paid a total remuneration of RM11.38 mil to its directors last year.
A cut in directors’ remuneration would help translate to a better bottom line as the utility giant was hit by foreign currency losses due to the weaker ringgit against the US dollar and the Japanese yen. In the first quarter ended Mar 31, 2020, TNB’s net profit declined by 54% to RM717.9 mil from RM1.56 bil a year ago on the back of lower revenue of RM11.65 bil versus RM13.24 bil.
In that quarter, electricity usage in the industrial and commercial sectors dropped between 25% and 50% as businesses and industries halted activities, while usage in the residential sector surged between 20% and 50% as families stayed indoors and workers worked from home.
Overall, demand contracted by 1.9% in the first quarter of 2020, before the full impact of the Covid-19 and the corresponding MCO periods.
Demand for May 2020 fell 28% year-on-year and TNB expects the electricity consumption to drop between 7% and 15% year-on-year for 2020, mainly due to slowdown of activities in the commercial sector.
TNB as a listed company needs to show improved performance. Surely it has room to cut costs and still be able to strike a balance between making profits and ensuring consumers are not saddled with unreasonably high bills. – June 16, 2020
