Tengku Razaleigh highlights the scandal of the independent power producers and how it has cost TNB, consumers and the nation dearly.
Nov 032011
Sep 212011
TNB has been bleeding red ink of late as a crippling gas shortage takes its toll. It is now time to review those lop-sided concession agreements with the independent power producers, especially the first-generation IPPs.
Continue reading »
May 282011
With an electricity tariff hike due to be announced on Monday, it might be useful to recall how the first generation of ‘independent power producers’ (IPPs) profited at TNB’s (and the Malaysian public’s) expense. Continue reading »
Feb 202009
Tenaga has posted a loss before tax of RM0.8 billion for its first quarter ended 30 November 2008 compared to a profit before tax of RM1.6 billion for the same period in 2007.
The amazing thing is that it made a forex translation loss of RM1.4 billion in the first quarter. That’s right, RM1.4 billion in one quarter.
And now it wants to take over the jinxed and problem-plagued Bakun Dam from Sarawak Hidro. Good luck, Tenaga – you will need it.
Dec 162008
Power demand is dropping as the economic slowdown creeps up on us, but TNB is being forced to pay more in capacity charges to IPPs and take over the laying of the Bakun undersea cables (to transmit even more electricity to the peninsula) after Sime Darby wisely pulled out.
By the way, TNB is 38 per cent owned by the Finance Ministry’s Khazanah and 14 per cent owned by EPF. So guess who is ultimately bearing the risk? Us.
A political economist has sent the following comment to me.
TNB is complaining that Peninsula Malaysia is going to have 45 per cent excess capacity within the next eight months. TNB also says that this excess capacity is due to the Jimah IPP coming online in January 2009. Given the terms of the IPP between Jimah and TNB, TNB expects to see a drop of about RM500 million from their overall profit margin since the IPP contract cannot be re-negotiated. TNB actually also said that they do not need the excess power but have to buy it. See story here.
Amazingly, this is going to happen within the context of a decline in power demand in Peninsula Malaysia which is set to drop with the coming downturn..! See this power demand drop story here.