Power Tariff Hike: Who would be hit hard

Earlier today, Energy, Green Technology and Water Minister Peter Chin said that for those using 301kW to 1000kW units, the tariff has been raised from 0.1 to 10 percent, or RM0.07 to RM30.30 beginning June 1.He further quipped that those using below 301kW (equivalent to RM77.00) would be spared and they would not be affected. Is it that simple? What he is saying is the direct impact, what about the indirect impact? As been pointed out by  Ratings Agency Malaysia chief economist Yeah Kim Leng, food prices are expected to increase with the announcement of electricity tariff hikes, as the food production industry are major users of electricity.He further elaborated that, the industry would be heavily affected by the progressive tariff hike. Though roughly seventy-five percent (75%) of households escape the direct effect of the tariff hike but they will have to bear the burden as producers will definitely pass on the higher costs to consumers. The inflationary pressure is unavoidable, and suddenly all the so-called e-con-no-miss who vehemently protested when the petrol subsidy cut reprieve (and by claiming that it have minimal impact on inflation) suddenly start to sing a different tune, now (after fierce reaction to their negative stand), they are finally admitting that any subsidy cut on petrol price, would indeed have inflationary impact, and government should not cut the subsidies.  Energy, Green Technology and Water Minister Peter Chin also announced that users whose electricity bills is less than RM20 will have to pay their bills beginning Dec 31, 2011. Although for some, this might be a small amount, but for the low-income group, it is quite significant, and imagine they will also be facing a double impact albeit the expected increase in food prices.  Although the statement by the Minister, (from the naked eyes at least) shows as though the low-income group (or low energy users, whichever way you want to look at it) would be spared, the harsh reality is they are the one who will be hit hard, imagine a big chunk or portion of their income is spent on food compared to well to do or high income earners........adios.......a.h.baharom