PUTRAJAYA: Regulators of the telecommunications and utilities industry must make sure that companies do not make too much profit.
Water, Energy and Communications Minister Datuk Seri Dr Lim Keng Yaik said these companies must be told that they should only expect “reasonable profit.”
“These companies cannot be allowed to make so much profit to the point that consumers suffer. This is particularly true for companies relating to the provision of utilities such as water and electricity.
“If they want to increase tariffs, they must have a reason for this which must be worked out on an economic basis. Regulators such as the National Water Services Commission, the Communications and Multimedia Commission and the Energy Commission have the responsibility to ensure this,” he said in his speech at the ministry’s monthly assembly here yesterday. Dr Lim said it was important that members in the various commissions were well versed with the economics within each industry.
“They must balance the whole situation and not be afraid to decide. Regulators must also make sure that the industry they are charged to look after is sustainable in the long-term and if not, they must be prepared to revamp the whole system,” he said, adding that he was specially concerned about the energy sector.
The sector, added Dr Lim, was being hampered by the subsidies for gas and coal, and regulators would have to come up with a more suitable model soon.
“We have 42% energy reserve and our grid is robust. Yet there are thousands of electricity breakdowns in the country. Something is wrong with Tenaga’s maintenance of its facilities.
“We will have to check if Tenaga can afford its maintenance and if it is being efficient,” he added.
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