The three-tier system in national electricity supply should be reduced to a two-tier system to bring down the cost of suppling power to consumers.

scah uuca talk 141205 nga kor ming Perak DAP secretary Nga Kor Ming said Tenaga Nasional Bhd (TNB) is now contractually obliged to buy whatever is produced by Independent Power Producers (IPPs), but that this may not be fully utlised.

He said that, if IPPs are removed from the power supply system, consumers will enjoy lower tariffs.

“In Japan and the US, the output not consumed is only 5 percent, compared to 40 percent in Malaysia. In the long run consumers have to bear this unnecessary financial burden,” he said.

“Energy, Green Technology and Water Minister Peter Chin should reveal the terms and conditions of the agreements that TNB has signed with IPPs, and the expiry dates, as everything is shrouded in mystery now.”

tenaga nasional and electricity 031208 Many of the IPPs are reportedly half-way through their 21-year life cycle for gas power plants. TNB is said to be unhappy with IPPS over the high tariff that ranges between 17 and 25 sen per Kwh for power supply.

Five IPPs - YTL Power Bhd, Malakoff Bhd ( Segari plant), Genting Sanyen Power Sdn Bhd, Powertek Bhd and Sime Darby Bhd - generate electricity and sell this to TNB (which is 70 percent owned by the government). In turn, TNB sells power to consumers.

TNB has asked for a review of the tariffs due to the rising price of fuel, and Chin had confirmed that this will be done soon. The tariff had been reduced by 3.7 percent in March.

‘Consumers paying price’

Perak Consumers Association president Abdul Rahman Said Alli called for TNB to be nationalised, to ensure that consumers pay affordable rates for power supply.

mahathir mohamad 06 The utility body had been privatised during the tenure of premier Dr Mahathir Mohamad, following which TNB had signed Power Purchase Agreements with IPPs.

“This is backfiring on consumers as a chain-reaction has set in. Prices of consumer goods and services have shot up,” said Abdul Rahman.

“Privatisation means the public must bear the costs while the companies enjoy the profits.”