Thursday June 5, 2008 MYT 4:51:40 PM

Dr Koh suggests three measures to overcome price hike

By NG SU-ANN and PRISCILLA DIELENBERG

GEORGE TOWN: Acting Gerakan president Tan Sri Dr Koh Tsu Koon has proposed three measures to improve and reduce the cost of public transportation.

Criticising the fuel price hike as "too severe" and "too sudden," he said drastic measures must be taken to cushion the impact of the drastic increase in fuel prices.

"First, abolish road tax and issue more licences for taxis, school buses and factory buses.

"Second, increase the number of buses for Rapid Penang and Rapid KL while providing soft loans for private bus companies to buy more buses," he said in a statement Thursday.

Dr Koh said these measures could increase the supply, cushion the cost and encourage more people to switch to public transportation.

The third measure was to further reduce the road tax for three years for private vehicle owners who choose to convert their vehicles to run on Compressed Natural Gas (CNG) or Liquefied Petroleum Gas (LPG), he added.

He said it was also important to increase the supply of CNG and LPG in all petrol stations and break the monopoly by Petronas.

"Similarly, all taxis and buses should be given grants and zero-interest loans to modify their vehicles to be able to run on CNG and LPG," he added.

Dr Koh said the three measures must be implemented immediately and efficiently.

Thursday June 5, 2008 MYT 6:10:34 PM

Tenaga, IPPs to discuss ways to ease consumer burden

By MANJIT KAUR

KUALA LUMPUR: The Cabinet has instructed Tenaga Nasional Berhad (TNB) to start negotiations with the Independent Power Producers (IPPs) to find ways to help alleviate the burden of consumers with the new electricity tariffs announced on Wednesday.

TNB chief executive officer Datuk Seri Che Khalib Mohamad Noh said he hoped to have a meeting with the IPPs as soon as possible.

He said from the initial feedback received, the representatives from the major IPPs were willing to discuss the issue to find the best solution to help consumers.

Asked if TNB would discuss the reduction of the reserve energy, which was about 40% at the moment, and considered high if compared to other countries, Che Khalib said TNB had to meet with the IPPs first before forming any conclusion.

“Let us meet them first and see how the IPPs can help in the matter.

“There is really no point in revealing numbers (referring to the reserve energy), as the issue is still at a preliminary stage,” he told a press conference Thursday at the TNB headquarters near here.

Also present was TNB chairman Tan Sri Leo Moggie.

Che Khalib added that in the meantime, TNB hoped that the new tariff structure would encourage domestic customers to use energy more efficiently, as they would have to pay a higher price if they used more electricity.

He said the new tariff structure was basically for TNB to recover the increase in gas and coal prices.

“The price increase in gas from RM6.40 per mmBTU to RM14.31 per mmBTU will add to TNB's fuel cost by approximately RM4.2bil yearly.

“The recent increase in coal prices will further add to TNB’s fuel cost by RM1.4bil in 2008,” he added.

Asked if there would be further adjustments in tariffs if Petronas increased gas prices progressively, and how soon the next review could be, Che Khalib said the upward movement in tariff basically illustrates that when there is a revision in gas price, whether upwards or downwards, there would be adjustments to the tariff.

“There may also be a downwards revision which had happened before 1997 due to the reduction in the price of fuel,” he added.

Asked if TNB was still looking at the timeframe of about every three months to review the tariff that was proposed to the Government before, Che Khalib said he did not think so, because at the moment the price of gas was heavily subsidised.

“The formula is only applicable when gas price movement is on a monthly basis, but since the Government is still heavily subsidising, we don’t think there is a need for a monthly revision.

“The gas price now is at RM14.31 and we have been made to understand from Petronas that the current market price is between RM35 and RM40 per mmBTU, so there is still a large discount,” he said, adding that as for coal price it still had to match market prices.

Che Khalib said since gas constitutes 68% of the total generation mix in Peninsular Malaysia, TNB would be spending RM7.5bil annually now for gas compared to RM3.3bil before the increase.

Asked if the hike in gas would bring a growth impact to its bottomline, Che Khalib said there would definitely be a reduction in profits, and since the financial year ends on Aug 31, the effects would be seen the following year.

Thursday June 5, 2008 MYT 6:48:30 PM

Change the way we use energy, urges PM (Read by his wife)

By SIM LEOI LEOI

PUTRAJAYA: The effects of greenhouse gases coupled with the recent increase in global fuel prices should bring about a new structural change in the way Malaysians use energy.

Prime Minister Datuk Seri Abdullah Ahmad Badawi said the private sector should not merely celebrate World Environment Day by merely planting trees or other such activities.

"These programmes should be coupled with new initiatives based on technology and innovation. Private companies - together with the cooperation of other government agencies - should focus their attention on developing technology that is more efficient in the usage of resources and renewable energy such as solar, wind and waves.

"Besides 'greening' our economy, such technology will lead to other business opportunities and new jobs as well as creating new industries," he said Thursday in his speech at the Langkawi Awards for sustainable cities here.

His speech was read out by his wife Datin Seri Jeanne Abdullah.

Abdullah said the World Environment Day celebrations should act as a reminder to all Malaysians to adopt a low-carbon approach in their lifestyle and economic activities.

"The awareness and involvement of everybody is so important. We have to instil culture and a way of life based on our responsibility to conserve the environment and use our natural resources in a sustainable manner.

"We have to see the environment we live in as being on loan from our future generations," he said.

Abdullah said besides acting as a catalyst for development, cities in Malaysia were also centres for the distribution of goods and services.

"The drastic economic growth of a city does not just impact its ecological system but that of surrounding areas as well. Therefore, a balanced growth for a city will bring benefits to communities in both the cities and outlying areas," he pointed out.

In his speech, Natural Resources and Environment Minister Datuk Douglas Uggah Embas said Asean ministers had set up a working group on environmental sustainable cities to encourage its members to conserve the environment.

"We have also outlined an Asean Framework for sustainable cities. Besides Singapore, Malaysia is in the forefront of other Asean countries," he said.