Electricity Tariff Hike Hits Kulim Hi-Tech Park
Businesses Up in Arms over Sudden 21% Increase
GEORGE TOWN: Businesses at the Kulim Hi-Tech Park (KHTP) are reeling from a sudden hike in electricity tariff, with some warning that the move will cripple investments and make Malaysia less attractive to high-tech industries.
Rapid Increase and Lack of Notice
As of January 1, companies at KHTP had seen their electricity costs surge by up to 21%. Tenants were notified of the increase on December 31, 2024 – just a day before the hike took effect. "This is shocking," said a senior figure in the Penang-Kulim semiconductor industry. "Businesses need time to plan, adjust budgets, and negotiate with customers. Instead, we were given just 24 hours’ notice. You can’t run a business with this level of uncertainty."
Exclusive Rights and Limited Options
Electricity at KHTP is supplied by NUR Power, a private utility company with exclusive generation and distribution rights for the tech park. This means that the industrial tenants at the park do not receive electricity from TNB. "Businesses need to have a stable and predictable energy supply to operate efficiently," said a senior executive at one of the affected businesses. "This tariff increase will make it difficult for us to maintain our competitiveness in the market."
Consequences for Businesses and the Economy
A European industrial player warned that the new tariff structure had wiped out the cost advantage of using power during non-peak hours, forcing the company to reconsider its entire energy strategy. "If this continues, many companies may reconsider further investments in Malaysia," he said.
Call for Action
The Kulim Hi-Tech Park Industrial Tenants Association (KITA) and the Malaysia Semiconductor Industry Association (MSIA) have called for immediate action on the issue. "We are asking for the same treatment as TNB customers – a six-month moratorium before the new rates take effect," said KITA president Chong Nee Hwa. MSIA urged the government to review the tariff increase, introduce relief measures, and hold an urgent stakeholder meeting to address the issue.
Conclusion
The sudden and rapid increase in electricity tariff at the Kulim Hi-Tech Park has sent shockwaves throughout the business community. Without a stable and predictable energy supply, companies may be forced to reconsider their investments in Malaysia. It is crucial that the government and NUR Power work together to address this issue and find a solution that benefits both businesses and the economy.
FAQs
Q: What is the current electricity tariff at the Kulim Hi-Tech Park?
A: The current electricity tariff at the Kulim Hi-Tech Park is 21% higher than before.
Q: How much notice did businesses receive before the tariff increase?
A: Businesses received only 24 hours’ notice before the tariff increase took effect.
Q: What are the concerns of the business community?
A: The business community is concerned about the lack of stability and predictability in the energy supply, which may affect their competitiveness and ability to attract further investments.
Q: What has been the response from NUR Power and the government?
A: NUR Power has yet to respond to FMT’s queries. The government has been urged to review the tariff increase, introduce relief measures, and hold an urgent stakeholder meeting to address the issue.