Big money is at stake in negotiations between national electricy corporation TNB and private electricity producers (IPPs).
The stakes can get really high. Check out what happened in Sabah during negotiations between TNB subsidiary Sabah Electricity Sdn Bhd (SESB) and an IPP said to be Sabah-based.
This report from the NST:
Present were 14 people, including TNB officers, representatives from the IPP and the TNB subsidiary, as well as lawyers and an official from the Energy, Water and Communications Ministry.
The discussion was to thrash out a deal for TNB to purchase power from the IPP, which has a 100MW capacity.
The going was tough and one of the SESB officials told the IPP representatives not to twist their arms.
“The leader of the IPP’s team said ‘arm-twisting is nothing’, then took out his pistol and brandished it in front of them,” said a source.
The move left the negotiating team in shock, which only intensified when the man, a Datuk, took out his gun again and laid it on the table as the discussions went on.
The incident was all the more alarming as it happened at TNB’s National Load Dispatch Centre (NLDC) in Bangsar — a top security facility designated “Key Point Level 1”, for areas of national security importance.
Who do these IPPs think they are?
It’s time for the government to get tough and renegotiate the deals with the IPPs, many of which are way too lop-sided in favour of the private companies – at the people’s expense. Of course, it was the BN government, mainly during Mahathir’s time, that came up with these lop-sided power purchase agreements in favour of the IPPs. The result: TNB, which the Malaysian public largely owns via Khazanah and EPF, is today bleeding red ink as it forks out cash to the IPPs for electricity it doesn’t need.