Latest news with #subsidy
ABC News
a day ago
- Business
- ABC News
Scaled-back home battery rebate scheme prompts confusion, backlash against WA government
The WA government has been forced to deny accusations of a backflip and a broken election promise after revealing a raft of changes to subsidies for people installing batteries in their homes. Prior to the state election in February, Premier Roger Cook promised to introduce a subsidy for residential batteries, saying it would lead to a "tsunami of work" for the industry. The commitment offered one-off rebates of up to $5,000 for Synergy customers and up to $7,500 for Horizon Power customers in regional WA to purchase a home battery. The batteries store electricity and are commonly paired with rooftop solar systems. Federal Labor then announced a similar scheme during its election campaign weeks later, offering a 30 per cent discount on purchasing a battery. But with both parties being re-elected to government, WA Labor has now significantly reduced its offering. Under what it describes as "revisions", only $1,300 will now be offered to Synergy customers and $3,800 for Horizon customers. WA's Minister for Energy and Decarbonisation, Amber-Jade Sanderson, claimed the changes made to the state plan would allow more people to access the rebates. Despite the drawdown in the total value, she claimed there was no discrepancy. The minister argued the original $5,000 and $7,500 figures now represented the total assistance available if people successfully claimed both the state and federal schemes. "The [total] rebate is still $5,000, so that is the original commitment from WA Labor," she told ABC Radio Perth. "I think it's important to understand that at no point did the federal government or the state government indicate that those rebates would be stacked. "People made an assumption, but I think overall for the greater good and a huge number of people now who will have access to a rebate, that is a better outcome for the community." The move has left many customers frustrated, with a number reaching out to the ABC saying they had made plans expecting to receive the total of both subsidies promised by both tiers of government. One Mandurah-based solar company has taken to social media to apologise to customers for the impact of changes to the scheme. "We didn't want to send out quotes based on outdated or inaccurate information," the company wrote. "Imagine getting a quote last week, only to find the rebate dropped or changed the next. Not fair, not right — and not how we operate. The changes come after previous attempts to clarify whether the two rebates would be stacked together received unclear responses. When asked at a media event on April 7 if consumers would have access to both amounts in full, Deputy Premier Rita Saffioti said: "We'll work through all those details." The ABC has seen a post-election email from Perth Labor MP Frank Paolino sent to a constituent interested in the scheme that was also non-committal on the dollar value. "I am informed that the solar battery rebate can be claimed alongside the state battery rebate," Mr Paolino wrote. Ms Sanderson has defended the decision as fiscally responsible. "If we throw a lot of money at 20,000 people up-front, that will essentially overheat the market and overwhelm providers, and it also means that another 80,000 people get a lot less," she said. "Ultimately what we want is for this scheme to be equitable, we want more batteries in households, we want more people to access those batteries, and ultimately we want this scheme to last for a number of years. "Whilst I understand a small number of people will be disappointed … the feedback that I've had from retailers is that they are delighted with the actual result. "We are spreading the rebate across more people and actually ensuring a pipeline of work for the sector for years to come."
Free Malaysia Today
a day ago
- Business
- Free Malaysia Today
Economist backs govt's LPG rule enforcement to optimise subsidies
All restaurants, cafés and hawker stalls are required by law to use commercial-grade 14kg LPG cylinders, which cost RM70 each. (AP pic) PETALING JAYA : An economist has expressed support for the government's decision to enforce existing cooking gas cylinder regulations, saying it is necessary to prevent the misuse of subsidised liquefied petroleum gas (LPG) and ensure they reach their intended beneficiaries. Sunway University's Yeah Kim Leng said the move would allow Putrajaya to reduce the RM3.4 billion it spends on LPG subsidies annually, allowing the savings to be reallocated to development programmes. 'The subsidy amount is sizeable and better used for health, education and other welfare development programmes. This should be communicated well, in line with the country's subsidy rationalisation reforms,' he told FMT. Yeah, however, said traders, especially small vendors and hawkers, should be allowed a grace period to help them adjust to the changes. Yeah Kim Leng. 'Rather than forceful enforcement, a more friendly and compassionate approach—such as warnings for first-time offenders and closer monitoring—would be desirable and less disruptive to small traders and hawkers,' he said. Last month, the domestic trade and cost of living ministry launched Ops Gasak in an effort to curb the misuse of subsidised LPG, particularly by industrial users and large-scale businesses. Businesses—including restaurants and cafés—are required to use commercial-grade 14kg LPG cylinders, costing RM70 each, and not subsidised household cylinders priced at RM26. Those that use or store more than 42kg, or three cylinders, must also obtain a scheduled controlled goods permit. Although introduced in 2021, the rule is only now being strictly enforced with the ultimate goal of reducing subsidy leakages. Domestic trade and cost of living minister Armizan Mohd Ali said the initiative aims to curb the misuse of subsidised LPG by ineligible sectors and prevent the illegal transfer of gas from subsidised cylinders to non-subsidised ones for resale at a profit. He also said enforcement officers were presently prioritising advocacy over punitive measures, and that no compounds will be issued or seizures conducted at this stage. Yeah said many traders may not even be aware of the regulations in question, and suggested that the government set a grace period before fully enforcing the law. He said small businesses, especially hawkers, may not be familiar with the law. 'Given that many small traders and hawkers are updated through word of mouth, a grace period coupled with well-crafted public communication and education programmes would be helpful in reducing misuse of subsidised gas.'
BBC News
2 days ago
- Business
- BBC News
Fare increases planned for West Midlands Ring and Ride buses
Fares for the region's Ring and Ride services are set to increase for the first time in eight years due to cost for a single trip would rise from £1.30 to £2 if the plans are approved by West Midlands Combined Authority's (WMCA) board later this members are also expected to award contracts to operators which will guarantee the service for a minimum of five years from 1 for Ring and Ride services has grown steadily, according to WMCA figures which show 2,487 people have taken a trip in the last six months. Bosses said the last week of March was the busiest since the start of 2020, when the service was hit by the Covid-19 pandemic. The authority currently provides a subsidy of nearly £6.5m per year to run the service but this is almost half the figure from 2010/11 when its budget was around £12 million.A WMCA report said income from fares brought in about £250,000 per year and that this was reinvested into the rises in inflation, charges have remained the same since April fees are much lower than the region's fixed route bus network – which will see fares increased further later this month – which has led to concerns people who do not need Ring and Ride might attempt to switch to it."Fares are now significantly lower than the standard single bus fares despite the significantly higher level of customer service," the report said."The current scenario could also potentially drive people who don't need this service to switch to it rather than using fixed route bus."Without any fares adjustments the service will become increasingly unsustainable and place further pressure on the transport levy." If approved, the new Ring and Ride fare structure would be:£2 – Registered user aged 16+ / essential escort carer (up from £1.30)£1 – Registered user aged 5-15 (up from 65p)£2 – Adult travelling with registered user (down from £2.40)£1 – Child travelling with a registered user (up from 65p)Children under the age of 5 will still travel for free This news was gathered by the Local Democracy Reporting Service which covers councils and other public service organisations. Follow BBC Wolverhampton & Black Country on BBC Sounds, Facebook, X and Instagram.
Free Malaysia Today
2 days ago
- Business
- Free Malaysia Today
Delay RON95 subsidy rationalisation, says petrol dealers group
Finance minister II Amir Hamzah Azizan recently announced that the RON95 subsidy rationalisation would begin in the second half of the year. PETALING JAYA : The Petroleum Dealers Association of Malaysia (PDAM) has called on the government to delay rationalising RON95 subsidies until critical issues affecting station sustainability are addressed. PDAM president Khairul Annuar Abdul Aziz, whose association represents more than 4,000 petrol stations nationwide, said dealer margins, fixed under the automatic pricing mechanism, had not been revised since 2019 and no longer reflected current operating costs. He also voiced concern over the merchant discount rate (MDR) imposed on card payments, which increases as fuel prices rise but leaves dealers' per-litre commissions untouched. 'Without a margin revision, small and medium-volume station operators will face losses from the very first day of the RON95 subsidy rationalisation implementation,' he said in a statement today. 'And as pump prices increase under the rationalisation, the MDR rises accordingly, but dealer commissions remain static, resulting in a further erosion of margins.' Finance minister II Amir Hamzah Azizan recently announced that the subsidy rationalisation would begin in the second half of the year. Prime Minister Anwar Ibrahim said the cuts would mainly target foreigners and Malaysia's top 5% to 10% of income earners. Khairul also took aim at a group representing Bumiputera fuel retailers, which claimed there had been no consultation with dealers on the rationalisation plan. He dismissed the claim as 'inaccurate and misleading', saying PDAM was the government-recognised umbrella body for petrol dealers and had been in formal talks with the domestic trade and finance ministries. 'We urge all stakeholders to put aside differences and unite behind a common objective: to support a fair and sustainable targeted subsidy system without neglecting the economic realities faced at the operational level,' he said.
Free Malaysia Today
7 days ago
- Business
- Free Malaysia Today
No removal of LPG subsidy, says minister
Domestic trade and cost of living minister Armizan Mohd Ali said his ministry is merely enforcing regulations on subsidised LPG cylinders that have been in place since 2021. (Bernama pic) PETALING JAYA : The government has not removed the subsidy for liquefied petroleum gas (LPG), says domestic trade and cost of living minister Armizan Mohd Ali. Rubbishing claims that the subsidy had been withdrawn, Armizan said the government had not made such a decision and that the allegations were aimed at confusing or misleading the public. 'The subsidy is not being removed. The existing rules have been in place since 2021. What we are doing now is enforcing them more strictly,' he said in a statement. Armizan said there was confusion on the matter after a nationwide operation to combat the misuse and leakage of subsidised LPG, particularly by commercial and industrial sectors. He said the operation was to tackle two key issues: the use of subsidised LPG cylinders by non-eligible sectors, and illegal decanting activities, where gas from subsidised cylinders is transferred into non-subsidised ones and sold at a profit. 'These rogue operators are making huge profits by selling the gas at prices just below commercial rates, including smuggling it abroad. This is clearly an abuse of public funds,' he said. Under the existing regulations, businesses storing or using more than three 14kg cylinders (or over 42kg of LPG) at any one time are required to obtain a scheduled controlled goods permit. This rule has been in effect since Oct 15, 2021. Armizan said enforcement officers are focusing on advocacy rather than punitive action. 'Compounds are not being issued yet while seizures are not being made. Documents being handed out are standard premises inspection notices, not compound notices,' he said, addressing concerns raised by food operators who had received such notices during routine checks. He also warned against assuming that all restaurants were entitled to subsidised LPG, as the current regulation was aimed at delivering the subsidy in a targeted manner. 'Is it fair for a restaurant selling chicken rice at RM25 a plate to get the same subsidy as a stall charging just RM8?' he said. Armizan pointed out that Malaysia's LPG subsidy bill had risen from RM2.2 billion in 2013 to nearly RM3.4 billion in 2024, and could grow further if the delivery of the subsidy is not reformed. He said the LPG subsidy was meant to help households, not to support commercial operations. 'The subsidy comes from public funds, from taxpayers. We must manage it responsibly,' he said. Earlier, PAS Youth chief Afnan Hamimi Taib Azamudden criticised the enforcement operation, claiming it placed an unnecessary burden on small traders and the public. He said all traders, including small businesses, would be forced to switch to commercial LPG cylinders that cost nearly RM70 each – almost three times the subsidised rate.
