Frequently Asked Questions (FAQ)


1	What can I complain to the KeTTHA about? KeTTHA can investigate complaints about administrative actions and decisions of Malaysian Government agencies at the federal, state and local to see if they are wrong, unjust, unlawful or just plain unfair.
2	Is there any fees charged to lodge the complaint? It is free of charge.
3	Can I lodge a complaint on behalf of another person? Yes but you have to inform us what is your relationship to the complainant. You have to get the consent from the aggrieved person. However, we encourage the complainant to provide us their personal particulars including name, contact address and telephone number.
4	Can I make an anonymous complaint? Yes. KeTTHA accepts anonymous or ‘whistleblower’ complaints. We will not normally investigate unless the complaint raises a serious matter and there is sufficient information in the complaint to enable us to conduct an investigation.
5	What are the types of complaint that can be lodged to KeTTHA? Types of complaint that can be lodged to KeTTHA include delay in action or no action, unfair action, lack of public amenities, inadequacies of policy implementation and law, abuse of power, misconduct of public officials, failure to adhere to procedures, failure of enforcement and unsatisfactory quality of service provided.
6	Can all complaints be referred to KeTTHA? All complaints may be referred to KeTTHA except complaints against Government policies, matters under the purview of Public Accounts Committee (PAC), Anti-Corruption Agency and Legal Aid Bureau. We will not take complaints that have been referred to a lawyer or the court.
7	How do I make a complaint? You can make a complaint by telephone, in person, in writing, by fax, through our web-site and during our meet the people programs.
8	What should I include in my complaint to KeTTHA? Your complaint should contain enough information to allow KeTTHA to assess the situation and how best to assist you. We encourage the complainant to provide us their personal particulars include name, contact address and telephone number to enable us to report the progress of the investigation. We can withhold these personal details if requested by complainant. Tell us clearly what you want KeTTHA to investigate. Provide as much documentation as possible include copies or letters or documents that show you have already attempted to resolve the complaint with the agency concerned. Tell us what outcome you are looking for.
9	What happens to my complaint? Your complaint will be acknowledged promptly. We will give your complaint careful consideration. In most cases we will telephone the agency or person involved and asks for an explanation. We will write to them to get the necessary feedback and information. Most complaints are resolved at this stage. If the complaint raises serious or complex issues, or if we are not satisfied by the agency initial response, we may undertake further investigation. If for reasons why we cannot take up your complaint, we will explain them to you. We will keep you informed throughout the investigation. If we find your complaint is justified, the conclusions are reported to you and the agency concerned. KeTTHA may recommend that the agency should reconsider or change its action or decision: that a law, rule or procedure should be changed; and/or that the agency should take any other action that is appropriate in the circumstances. KeTTHA cannot override the decision of agencies, or compel them to comply with our recommendations. However, agencies generally do accept KeTTHA recommendations. If they do not and if KeTTHA considers that of public interest, we can bring up the issue to the Permanent Committee on Public Complaints chaired by the Chief Secretary to the Government. Decisions made by the Committee have to be implemented. We can also bring matters of public interest to the Cabinet.
10	How long will an investigation take? We will settle your complaints as quickly as possible. For complicated cases that involve a few agencies, it may take longer to investigate. Our Service Charter sets out our standards of service in more detail.
11	When will the new electricity tariffs become effective? The new electricity tariffs will take effect on June 1, 2011.
12	How much is the electricity tariff increase for this tariff review? a) The average electricity tariff will be increased by 2.23 sen/kWh or 7.12% from 31.31 sen/kWh to 33.54 sen/kWh. The 7.12% increase is made up of: 5.12% or 1.60sen/kWh due to increase of the natural gas price to the power sector from RM10.70/mmBTU to RM13.70/mmBTU in line with the increase in global energy prices; and 2.0% or 0.63sen/kWh for TNB to partly recover the increase of electricity supply cost since the last base tariff revision in June 2006. b) 1.0% to be imposed to consumer’s monthly bill as the Feed-in-Tariff (FiT) to promote Renewable Energy (RE). Domestic consumers with consumption of less than 300kWh/month will be exempted.
13	What are other special rates or discounts being offered to TNB consumers? The tariff review package also provides the following special rates and discounts: The 10% discount on electricity bills currently enjoyed by Government schools, Government institutions of higher learning, places of worship and welfare homes registered with the Government is maintained. The 10% discount will now be extended to educational institutions partially-funded by the Government; Thermal Energy Storage (TES) consumers will enjoy higher discount for off-peak electricity consumption; Reduction in Firm Standby charge for Co-generators to encourage Green Technology, Energy Efficiency and Demand Side Management (DSM) initiatives; and Water treatment, water distribution and sewerage companies to be categorized under Industrial Tariff.
14	How much is the average electricity bill increase for every consumer segment? Industrial consumers will experience an average increase of 8.35% (ranging from 6.2% to 10.3%). While commercial consumers will experience an average increase of 8.35% (ranging from 6.2% to 10.3%). However, all domestic consumers with monthly consumption up to 200kWh (lifeline band) and the next 100kWh will not be affected by the tariff increase. Domestic consumers in these bands will continue to enjoy the subsidised unit rate of 21.8 sen/kWh and 33.4 sen/kWh respectively. Domestic consumers in the 301 to 400 kWh per month band will experience minimal electricity bill increase (i.e. 0.1% -6.0% or RM0.07 – RM6.60).
15	What is the impact to the Lifeline Band consumers? The Lifeline Band is maintained at 200kWh/month. Domestic consumers in the lifeline band had never experienced any electricity tariff increase during the past tariff adjustments since 1997. Around 3.3 million households will continue to enjoy the subsidised unit rate of 21.8 sen/kWh. This number of households safely encompasses all 200,000 poor households (i.e. income less than RM750 per month).
16	What is the main rationale for the electricity tariff revision? The increase in electricity tariff is largely contributed by the increase in the natural gas price to the power sector from RM10.70/mmBTU to RM13.70/mmBTU (28%) with effect from June 1, 2011. The increase in natural gas price is unavoidable due to the increase in global energy prices since 2009 and is based on the Government natural gas pricing mechanism in which the price is periodically reviewed in tandem with the Medium Fuel Oil (MFO) market price trend. Since natural gas cost constitutes around 54.2% of the total fuel cost mix (FY2010), the additional fuel cost incurred due to the gas price revision is reflected via the increase in end-use electricity tariff.
17	How are gas prices determined? Gas prices are determined based on their alternative fuel pricing. For example, if fuel oil is used in power generation and if gas is used to replace fuel oil as an energy source, than the price of gas will be the same as that of fuel oil. The practice of pricing gas relative to its alternative fuels (e.g. fuel oil prices) has been adopted in all countries in the region. Historically, the power sector in Malaysia has used fuel oil to generate electricity. To offer incentives to the power sector to convert from fuel oil to gas, in line with international practices, gas prices were pegged to fuel oil prices, which are widely traded and published. Hence, fuel oil prices are used as a reference for determining gas prices in Malaysia for power generation. The gas price formulae agreed between buyer and sellers are stipulated in the gas sales agreements (GSAs). This provides transparency between both parties. The effective gas prices which are computed based on these contractual gas price formulae fluctuate according to market prices of fuel oil.
18	How is the gas subsidy determined? A subsidy is defined as the difference between Market Price (reflected by the effective price computed from contractual price formulae) and Government Fixed Price (subsidized price). Currently the market price for gas for the Power Sector is about RM 47.42 per MMBTU while the subsidised price is RM 10.70 per MMBTU. Therefore, the subsidy is the difference between the market price and the subsidised price, i.e. RM 36.72 per MMBTU.
19	What is the cost of the gas subsidy to the nation? Up to end 2010, PETRONAS has extended about RM131.3 billion in gas subsidy to both the Power and Non-Power Sectors. If the gas prices remain unchanged (i.e. Power Sector at RM 10.70 per MMBTU; Non-Power Sector at RM 15.35 per MMBTU), about RM27 billion in 2011 would have to be incurred. As this situation is not sustainable, the government had no choice but to restructure the gas subsidy. (Note: The gas subsidy estimate is based on fuel oil price of USD 93.98 per barrel and exchange rate of RM 3.0467/USD). Shouldering gas subsidy would limit PETRONAS’ ability to contribute in terms of dividends and corporate taxes. It also limits PETRONAS’ ability to reinvest to sustain future streams of revenue.

What can I complain to the KeTTHA about?

KeTTHA can investigate complaints about administrative actions and decisions of Malaysian Government agencies at the federal, state and local to see if they are wrong, unjust, unlawful or just plain unfair.

Is there any fees charged to lodge the complaint?

It is free of charge.

Can I lodge a complaint on behalf of another person?

Yes but you have to inform us what is your relationship to the complainant. You have to get the consent from the aggrieved person. However, we encourage the complainant to provide us their personal particulars including name, contact address and telephone number.

Can I make an anonymous complaint?

Yes. KeTTHA accepts anonymous or ‘whistleblower’ complaints. We will not normally investigate unless the complaint raises a serious matter and there is sufficient information in the complaint to enable us to conduct an investigation.

What are the types of complaint that can be lodged to KeTTHA?

Types of complaint that can be lodged to KeTTHA include delay in action or no action, unfair action, lack of public amenities, inadequacies of policy implementation and law, abuse of power, misconduct of public officials, failure to adhere to procedures, failure of enforcement and unsatisfactory quality of service provided.

Can all complaints be referred to KeTTHA?

All complaints may be referred to KeTTHA except complaints against Government policies, matters under the purview of Public Accounts Committee (PAC), Anti-Corruption Agency and Legal Aid Bureau. We will not take complaints that have been referred to a lawyer or the court.

How do I make a complaint?

You can make a complaint by telephone, in person, in writing, by fax, through our web-site and during our meet the people programs.

What should I include in my complaint to KeTTHA?

Your complaint should contain enough information to allow KeTTHA to assess the situation and how best to assist you. We encourage the complainant to provide us their personal particulars include name, contact address and telephone number to enable us to report the progress of the investigation. We can withhold these personal details if requested by complainant.

Tell us clearly what you want KeTTHA to investigate. Provide as much documentation as possible include copies or letters or documents that show you have already attempted to resolve the complaint with the agency concerned. Tell us what outcome you are looking for.

What happens to my complaint?

Your complaint will be acknowledged promptly. We will give your complaint careful consideration. In most cases we will telephone the agency or person involved and asks for an explanation. We will write to them to get the necessary feedback and information. Most complaints are resolved at this stage. If the complaint raises serious or complex issues, or if we are not satisfied by the agency initial response, we may undertake further investigation. If for reasons why we cannot take up your complaint, we will explain them to you.

We will keep you informed throughout the investigation. If we find your complaint is justified, the conclusions are reported to you and the agency concerned. KeTTHA may recommend that the agency should reconsider or change its action or decision: that a law, rule or procedure should be changed; and/or that the agency should take any other action that is appropriate in the circumstances.

KeTTHA cannot override the decision of agencies, or compel them to comply with our recommendations. However, agencies generally do accept KeTTHA recommendations. If they do not and if KeTTHA considers that of public interest, we can bring up the issue to the Permanent Committee on Public Complaints chaired by the Chief Secretary to the Government. Decisions made by the Committee have to be implemented. We can also bring matters of public interest to the Cabinet.

How long will an investigation take?

We will settle your complaints as quickly as possible. For complicated cases that involve a few agencies, it may take longer to investigate. Our Service Charter sets out our standards of service in more detail.

When will the new electricity tariffs become effective?

The new electricity tariffs will take effect on June 1, 2011.

How much is the electricity tariff increase for this tariff review?

a) The average electricity tariff will be increased by 2.23 sen/kWh or 7.12% from 31.31 sen/kWh to 33.54 sen/kWh. The 7.12% increase is made up of:

5.12% or 1.60sen/kWh due to increase of the natural gas price to the power sector from RM10.70/mmBTU to RM13.70/mmBTU in line with the increase in global energy prices; and

2.0% or 0.63sen/kWh for TNB to partly recover the increase of electricity supply cost since the last base tariff revision in June 2006.

b) 1.0% to be imposed to consumer’s monthly bill as the Feed-in-Tariff (FiT) to promote Renewable Energy (RE). Domestic consumers with consumption of less than 300kWh/month will be exempted.

What are other special rates or discounts being offered to TNB consumers?

The tariff review package also provides the following special rates and discounts:

The 10% discount on electricity bills currently enjoyed by Government schools, Government institutions of higher learning, places of worship and welfare homes registered with the Government is maintained. The 10% discount will now be extended to educational institutions partially-funded by the Government;

Thermal Energy Storage (TES) consumers will enjoy higher discount for off-peak electricity consumption;

Reduction in Firm Standby charge for Co-generators to encourage Green Technology, Energy Efficiency and Demand Side Management (DSM) initiatives; and

Water treatment, water distribution and sewerage companies to be categorized under Industrial Tariff.

How much is the average electricity bill increase for every consumer segment?

Industrial consumers will experience an average increase of 8.35% (ranging from 6.2% to 10.3%). While commercial consumers will experience an average increase of 8.35% (ranging from 6.2% to 10.3%).

However, all domestic consumers with monthly consumption up to 200kWh (lifeline band) and the next 100kWh will not be affected by the tariff increase. Domestic consumers in these bands will continue to enjoy the subsidised unit rate of 21.8 sen/kWh and 33.4 sen/kWh respectively.

Domestic consumers in the 301 to 400 kWh per month band will experience minimal electricity bill increase (i.e. 0.1% -6.0% or RM0.07 – RM6.60).

What is the impact to the Lifeline Band consumers?

The Lifeline Band is maintained at 200kWh/month. Domestic consumers in the lifeline band had never experienced any electricity tariff increase during the past tariff adjustments since 1997. Around 3.3 million households will continue to enjoy the subsidised unit rate of 21.8 sen/kWh. This number of households safely encompasses all 200,000 poor households (i.e. income less than RM750 per month).

What is the main rationale for the electricity tariff revision?

The increase in electricity tariff is largely contributed by the increase in the natural gas price to the power sector from RM10.70/mmBTU to RM13.70/mmBTU (28%) with effect from June 1, 2011.

The increase in natural gas price is unavoidable due to the increase in global energy prices since 2009 and is based on the Government natural gas pricing mechanism in which the price is periodically reviewed in tandem with the Medium Fuel Oil (MFO) market price trend.

Since natural gas cost constitutes around 54.2% of the total fuel cost mix (FY2010), the additional fuel cost incurred due to the gas price revision is reflected via the increase in end-use electricity tariff.

How are gas prices determined?

Gas prices are determined based on their alternative fuel pricing. For example, if fuel oil is used in power generation and if gas is used to replace fuel oil as an energy source, than the price of gas will be the same as that of fuel oil. The practice of pricing gas relative to its alternative fuels (e.g. fuel oil prices) has been adopted in all countries in the region.

Historically, the power sector in Malaysia has used fuel oil to generate electricity. To offer incentives to the power sector to convert from fuel oil to gas, in line with international practices, gas prices were pegged to fuel oil prices, which are widely traded and published. Hence, fuel oil prices are used as a reference for determining gas prices in Malaysia for power generation.

The gas price formulae agreed between buyer and sellers are stipulated in the gas sales agreements (GSAs). This provides transparency between both parties. The effective gas prices which are computed based on these contractual gas price formulae fluctuate according to market prices of fuel oil.

How is the gas subsidy determined?

A subsidy is defined as the difference between Market Price (reflected by the effective price computed from contractual price formulae) and Government Fixed Price (subsidized price).
Currently the market price for gas for the Power Sector is about RM 47.42 per MMBTU while the subsidised price is RM 10.70 per MMBTU. Therefore, the subsidy is the difference between the market price and the subsidised price, i.e. RM 36.72 per MMBTU.

What is the cost of the gas subsidy to the nation?

Up to end 2010, PETRONAS has extended about RM131.3 billion in gas subsidy to both the Power and Non-Power Sectors.

If the gas prices remain unchanged (i.e. Power Sector at RM 10.70 per MMBTU; Non-Power Sector at RM 15.35 per MMBTU), about RM27 billion in 2011 would have to be incurred. As this situation is not sustainable, the government had no choice but to restructure the gas subsidy. (Note: The gas subsidy estimate is based on fuel oil price of USD 93.98 per barrel and exchange rate of RM 3.0467/USD).

Shouldering gas subsidy would limit PETRONAS’ ability to contribute in terms of dividends and corporate taxes. It also limits PETRONAS’ ability to reinvest to sustain future streams of revenue.

Frequently Asked Questions (FAQ)

May 2012