Hoteliers appeal for gradual surcharge hike

Safe for now: A meter reader printing an electricity bill for a domestic user in Puchong, Selangor. Unlike large businesses, domestic consumers are not affected by the hike in surcharge.

GEORGE TOWN: Businesses here have suggested that the increase in electricity surcharge be implemented on a staggered basis to help them cushion the impact of the hike.

Furthermore, they contend that most of them are still in recovery mode.

According to them, their electricity bills have gone up by 35% to 43% since the new rate of 20sen per kWh began being implemented for the period between January and June.

This is an increase from the previous 3.7sen.

Berjaya Penang Hotel general manager Tan Yew Jin said its electricity bill in January came up to RM42,000.

“The increase was 36.67%, which is too high for us,” he said.

Tan said the hotel would have to absorb the cost as it could not raise the room rates.

“It is true that business is improving but at the end of the day, after all the operating costs, we cannot see any profit.

“We are still in the recovery process. This surcharge is something that will slow down the recovery,” he said.

Tan hopes the government will look into introducing the electricity surcharge gradually to enable industries to recover and also cope with the increase.

The Prestige’s general manager Melvin Ooi said the high electricity cost was a concern.

“Our monthly bill has increased by 30% to 40% due to the rise in electricity tariff, which is a lot for us to cope with,” he said.

He urged the government to put on hold the implementation of the surcharge pending the revival of the tourism sector.

Malaysian Association of Hotels (MAH) Penang chapter chairman Tony Goh said the occupancy rate at most hotels in Penang was still low.

“Besides the electricity charges, hotels also have to cope with the minimum wage and overtime payments, which take up a critical portion of our operating costs,” he said.

Goh said the government should work out an incentive or targeted incentive for the industries to cope with the increase.

Malaysia Budget & Business Hotel Association (MyBHA) president Dr Sri Ganesh Michiel said the new electricity tariff adjustment would impact budget and business hotels, frequented by local travellers and people from small and medium enterprises.

“If we have to increase our room rates, it will affect business customers from SMEs,” he said.

He also voiced concern that higher electricity bills would mean that the hotels have to face even higher operating costs.

This could lead to deteriorating services at hotels, he said.

Ganesh also pointed out that operators offering short-term stay accommodation, or those providing unlicensed lodging, did not face high energy bills as they were being charged residential electricity rate.

MAH president Datin Christina Toh said the monthly energy bills of its members had increased by 20% to 30% due to the increase in electricity tariff imposed on non-domestic users beginning this year.

She urged the government to allow a moratorium on the electricity surcharge, saying the new tariff was a burden to industry players who are on the road to economic recovery.