TNB's spiralling debt is to my mind not because of spiraling fuel costs alone but due to the uncontrolled number of independent power producers (IPPs) now selling electricity to TNB under take-or-pay basis.

As a result, TNB is forced to operate at a very high reserve margin (above 35 percent) which means TNB is running the turbine (burning fuel) without supplying electricity to the grid, i.e like a car engine running but not moving).

No electric utility in the world has such a high reserve margin which has now cost TNB billions of ringgit.

Secondly, TNB is helpless for it cannot maximise the use of all of its hydro-generation plants - which are the least-cost generation option - as it has to forcefully buy from less efficient gas turbines run by the IPPs as stipulated under the agreement.

These are the crux of the problems plaguing TNB. Identified as a gold mine, and being a monopoly and profitable electric utility, it is now being slowly squeezed of its financial resources by those greedy people under the guise of IPPs.

With the present situation, it will not be a surprise that TNB will suffer the same fate as MAS.