Wednesday, September 28, 2011

Consider Alternatives Before Hiking Tariff

Extracted from Brudirect Public Forum:


As reported in the local newspaper The Brunei Times THURSDAY, SEPTEMBER 22, 2011 entitled 'Cheaper power rates for most Bruneians', I am shocked to read the following sentence.:

“On the other hand, higher consumption means higher bills under the new system. Running computations based on the data provided by the official, The Brunei Times found out that a household that uses 2,740 kWh will rack up a bill of $150 a month under the current system ($21.50 for the first 170 kWh + $128.50 for the remaining 2,570 kWh at $0.05 per kWh).

Under the new tariff, the same consumption would yield a power bill of $291 ($5 for the first 500 kWh, $100 for the next 1,000 kWh, and $186 for the remaining 1,240 kWh).

Dato Hj Matsatejo said that the new system would "definitely" raise awareness, and people would be more accountable for their actions...”

In article, the Minister taunted that most Bruneian "will" enjoy cheaper rate with the new electric tariff. However, for those unlucky enough, their normal old electric bill of B$150 shall now cost them B$291 per month. Brilliant isn't it? Why the sarcasm?

Well, lets see..

a. What is the minister assistance in helping the people in reducing their electricity consumption apart from targeting their wallets?
 

b. Has this new tariff study the implication it has to the fixed income people of which most Bruneian belongs to?
 

c. Is this the best alternative (new electric tariff) in educating the people about "prudent" electric usage?

d. The minister talk about the people to switching to energy saving appliances such inverter type electrical appliances. Where are the people going to find that extra money to buy such appliances?

e. Doesn't the minister is aware that the food and non-alcoholic beverages index in Brunei had been steadily increasing since 2004 from 100.8 to 110.0 in 2010?

f. To further irritate the whole issue, according to the minister, about 20% of the population (low income group) will benefit the new tariff. What happen to the rest 80%? Should they just swallowed this just because they are deemed to "afford" it?
 

I sincerely do not know what is the logic behind all this so called new initiative. One thing for sure, it certainly does not help the people.

If the minister is thinking of conserving our energy resources, then why he is considering to Thailand and Philippine request for gas and increasing gas supplies to Japan?

Surely with depleting resources, Brunei should not be contemplating to such requests. Do not let our "friendliness" take the best out of us, the Bruneian. A malay proverb says, "Ambuk di hutan disusukan, anak dirumah mati kelaparan".

What really annoying about the whole thing is the lack of transparency in formulating such policy. This policy has a profound impact to the people lives and yet it was not discussed nor debated openly. What ever happen to our LegCo? What is their take on this matter?

The next thing that make me nuts is the notion of electricity going private . Is it not enough for the minister to run the people to the ground with his new tariff now he had to up the ante?

Electricity is a basic necessity. Just like water and housing. Privatizing them are just plain silly. We are all well aware that corporate put profit first before welfare. There are many examples where we hear and see, corporates being belligerence towards the people. We don't have to look far, just look how DST had been treating her customers? Is that we want?

As I have said before, there are many ways to conserve energy. Targeting people wallets are definitely not one of them. In fact, we should be finding ways to improve the service the government provide to the people.
 

HM had been a benevolent ruler. Had been kind and generous to his people. And for that the people gave him their full loyalty and support. But, the minister action is only planting seeds of discontent amongst the people towards the government.

If the minister excuse for his action is to save government expenditure then he is totally clueless about Brunei money. As a sovereign nation with a sovereign currency, there is no issue of Brunei running out of Brunei dollar. Since 1971, after the world had gone off the last remaining gold standard, Brunei currency had been FIAT currency. Notion that we needs to export our oil and gas in order to earned hard currency is false. Those so called "hard currency" are also themselves fiat currencies. USD is not being back up with Mount Rushmore, Yen is not being back up Mount Fuji and etc. None what so ever.

In short, if Brunei to runs out of oil and gas for export and all her overseas investments failed, it does not stop the government ability to spend by a single cent!

Do not be fool with talks by so called expert. Majority of them are clueless about government finances. We can see all this just by watching, listening and reading the news about the state of affair of their country economies. Trying to propagate their silly ideas to Brunei. Don't believe me, take classic example IMF. This organization had been pushing for tough austerity measures to the like of Greece, Ireland and etc. And what these countries got? More debt, more unemployment, more social unrest, more poverty, losing state assets and etc. Is this the way of life we are embarking to?

Pushing a policy under the disguise of progress where in reality it is a backwardness. Our people had been suffering silently whilst our ministers joking and laughing at the dinner table.

I do agree that we must be wise in our electricity usage and I do agree that people must be accountable for their electric dues to the government. But does the intended action proposed by our energy minister justify to burn further hole in the people's wallet?

I do not know if you realize this, but are now seeing Brunei paying more to get by in this country. We have "income tax" of 8.5% (TAP and SCP), our food prices had been steadily increasing month after month (refer to JPKE stats on Food CPI), increase tax on cars (whilst at the same unimproved public transport services), paying down debt (due to bank "generosity") and etc. And now new electricity tariff.

What does the government wants from her people? To teach or to punish?

What is more frustrating is the lack of action by the minister in trying to reduce the anticipated impact on electric tariff. He talks a lot about the needs of efficiency, needs about reduce consumption and needs to conserve, but he did not address them in terms how to achieve it. Instead the minister approach is to hit the population wallet. Is that on? Ok fine, lets assume that the population buys into the minister argument, what do the population gets in return? The population gets a bigger bill while the minister got his ministership extended and few more state medals. Is that what we wants or is that what HE wants?

There had been many studies about energy and its related issue. CSPS made many studies on alternative energies and most of them had been put forward. But what actions are being taken about it? Totally NONE. The most we can hear is, "it is still under consideration". Until when is the question? In the meantime, the population continue to pay for the heavy price.

Furthermore, there are many talks about the needs to save government money and thus the government must be prudent in her spending. Are they saying that Brunei is running out of Brunei dollar? Since when? Honestly, there is no such thing that our country running out of Brunei dollar. Brunei can create as much or as little Brunei she wants. No one call tell her otherwise for simple reason. Brunei dollar is a sovereign currency of Brunei Darussalam. Brunei have the exclusive right to create her Brunei dollar.No one and I repeat no one can tell Brunei not to create Brunei dollar. Brunei government is monopoly issuer of Brunei dollar and the people of Brunei is monopoly user of Brunei dollar. As long as all transactions are done in Brunei dollar in Brunei, there is no issue of our government running out of money or to save up (not unless they want to bring the money into their grave).

To me, there are better alternatives than to hit the people's wallet. If the country is serious about energy conserving and efficiency then explore and implement the following:

a. Reduce the national speed limits from 100 or 80 km/hr to 65 km/hr. Enforce that limit religiously.
b. Initiate state wide school bus program.
c. Do 4 days of working and 3 days of weekend.
d. Eliminate electric or hybrid car tax.
e. Give grant to the population to switch inefficient electrical appliances to more efficient appliances.
f. Give assistance and grant to the population to generate their own electricity.
g. Initiate LRT system in the country.
h. Initiate Maglev railway between Belait, Tutong, Brunei Muara and Temburong.
i. Develop alternative energy power generation NOW! - We have wind, solar, geo-thermal (hot water spring in Belait) and seriously consider nuclear power.
j. Initiate "no car day" if required.

If you analyze the above suggestion, most of it can be done now and some of it does not cost the government arms and legs. Others are within the government capacity. In term affordability, we can afford them seriously.

No comments:

Post a Comment