SEDA Malaysia Justifies Revision Of Surcharge

For the past two years, the Sustainable Energy Development Authority Malaysia (SEDA Malaysia) only collected one per cent of the two per cent surcharge imposed on electricity bills.

In a statement here today, its Chief Executive Officer, Datin Badriyah Abdul Malek, said the renewal energy (RE) targets meted out under the National RE Policy and Action Plan was on the basis of the collection of two per cent surcharge.

“Without a revision of the surcharge, the RE industry and market growth in the country under the Feed-in Tariff (FiT) mechanism, which was implemented on Dec 1, 2011, will come to a grinding halt,” she said.

She said if the RE initiatives were to suffer an abrupt end, the national objectives of achieving energy security, autonomy and mitigating climate change would be seriously impacted.

Badriyah said this in response to concerns raised by Penang Chief Minister, Lim Guan Eng, and member of Parliament for Serdang, Dr Ong Kian Ming.

Lim and Dr Ong have raised concerns on the achievements by SEDA Malaysia to justify on the revision of the surcharge on electricity bills for RE fund from one per cent to 1.6 per cent.

She said the revised surcharge would be effective from Jan 1, 2014 and affect electricity consumers of Tenaga Nasional Bhd and Sabah Electricity Sdn Bhd.

“However, domestic consumers with 300 kWh and less of electricity usage per month are exempted from such contribution,” she said.

On a separate note, Badriyah lauded the encouragement by glove maker, Supermax Corp Bhd, for manufacturers to consider generating renewable energy to reduce electricity consumption.

Besides the FiT mechanism, she said, SEDA Malaysia and Energy, Green Technology and Water Ministry were now studying on the possibility of employing the net-metering framework where electricity generated by solar photovoltaic systems installed by factory owners on their rooftops for self-consumption, hence reducing their electricity bills.