Electricity bill discounts should be extended to commercial, manufacturing sectors -- Plus Xnergy

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, June 2  -- Plus Xnergy Holding Sdn Bhd has asked the government to consider extending the 10 per cent electricity bill discount eligibility under PEMERKASA Plus to the commercial and manufacturing sectors, as one of their major challenges is managing overheads and reducing bottom lines.

Lauding the government's announcement on utility bill discounts for impacted sectors, Plus Xnergy group chief executive officer Ko Chuan Zhen said with a stricter lockdown to combat COVID-19, many factories will be operating on limited capacity, hence impacting their energy consumption.

He said electricity usage in the industrial and commercial sectors dropped between 25 per cent and 50 per cent during the movement control order (MCO) in 2020, as businesses halted activities, while residential consumption surged between 20 per cent and 50 per cent with the adoption of work-from-home (WFH) practice.

Although electricity consumption has been on a downward trend globally, it is expected to rebound in 2021 as economies recover, led by electricity generation from renewable energy (RE) sources, he told Bernama.

PEMERKASA Plus extended electricity bill discounts for affected sectors, namely hotel operators, travel agencies, shopping malls and premises, convention centres, theme parks, and local airlines, for another three months from July to September 2021.

The RM40 billion aid package, which was aimed at assisting the people and businesses facing economic challenges during the total lockdown, was announced by Prime Minister Tan Sri Muhyiddin Yassin in a special address on Monday.

RE Outlook 

Ko said the International Energy Association expects renewables to regain momentum in 2021 -- similar to the RE energy capacity in 2019, with delayed projects coming back online.

“Undeniably, the slowdown has impacted us, yet we see confidence and continued demand from commercial and industrial clients, namely Mah Sing Plastics, gaining a return on investments from their solar investment in just four years, and AJIYA Bhd (building solutions manufacturer), reaping a monthly savings of RM50,000," he added.

Ko said Plus Xnergy is still confident of the RE industry prospects, though conversion to actual bottom lines may take longer than expected, with the tightened standard operating procedures (SOP) and reduced operational activity, following its positive experiences.

“It is a difficult position for the government as they try to strike a balance between protecting lives and the nation’s economy.

"For us at Plus Xnergy, the wellbeing of employees is our topmost priority. WFH is mandatory, while we have had to postpone client meetings and project rollouts, as well as plan out warehousing as we weather the lockdown,” he said.

Meantime, Ko described Kuala Lumpur mayor Datuk Seri Mahadi Che Ngah's recent imposition of a 30 per cent compulsory reliance on RE for future commercial and residential developments in the capital as a good move as it contributes to the national RE goal of 31 per cent by 2025.

He said the government plays an important role in developing the RE industry, which is supported by strong policies such as the net energy metering and green investment tax allowance, which have greatly increased the interest and the adoption of solar solutions.

"In terms of Malaysia’s RE capacity mix projection, the latest Energy Commission report forecast a near two-fold increase in share from 17 per cent in 2021 to 31 per cent by 2032, while foreseeing a reduction in gas and coal combined share from 82 per cent to 69 per cent," he added.

-- BERNAMA