Nenggiri Dam: electricity tariff will go up, not down

The statement by Mohd Amar Abdullah, the Deputy Chief Minister of Kelantan that Nenggiri Dam will bring down electricity tariffs is misleading the people because the electricity tariff will increase.

According to project consultant, UKM Pakarunding Sdn Bhd, Nenggiri Dam will only operate for less than 4 hours per day. Hence, the total operations period is about 2 months per year.

Why is the Perikatan Nasional (PN) government building a dam that will be utilised for only 2 months per year?

According to Suruhanjaya Tenaga’s report, the total over-capacity of power plants (known as the electricity reserve margin rate) will reach 43% in 2027 when Nenggiri Dam starts operations.

The recommended optimum electricity reserve margin rate for Peninsular Malaysia is 15%; meanwhile, the federal government approved an electricity reserve margin rate for the period 2025-2029 of 25%.

Why is the Perikatan Nasional (PN) government going against its own electricity policy?

High electricity reserve margin rate will only increase the overall electricity tariff as the power plants’ shareholders receive a fixed payment for the unused power plants.

Why is the PAS leader misleading the people with a statement that electricity tariffs will come down?

Parti Sosialis Malaysia (PSM) urges the government to scrap the construction of Nenggiri Dam which will only enrich the crony capitalists by burdening the people and destroying the Orang Asli community’s livelihood.

Issued by:

SHARAN RAJ
National Coordinator,
Bureau for Environment & Climate Crisis
Parti Sosialis Malaysia (PSM)

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