KOTA KINABALU: Tawau MP Datuk Chua Soon Bui has challenged the Energy, Green Technology and Water Ministry to reveal the contracts of independent power provider (IPPs) so that the people would know the whole truth on the increase of power tariffs.
"It is pointless for the Government to have transformation programmes if the Ministry always' tells half truths and expects the people to accept the 'make-believe'," she said in a statement.
Chua, who is also SAPP Vice President, said the Ministry should explain why it is taking so long to reveal the contracts of the Power Producers' Agreements (PPAs) with all the IPPs, especially those in Kota Kinabalu, Sandakan and Tawau.
"Is it true that there are two types of payments in the PPAs with the IPPs, with one as capaci ty payment and the other as energy payment? Reliable sources indicate that the capacity payment of 21 Years is based on the IPP construction cost, i.e. the higher the construction cost, the higher is the capacity payment," she said.
According to her, the capacity payment is to be paid by Tenaga Nasional Berhad/Sabah Electricity Sdn Bhd (TNB/SESB) in Sabah (or TNB in Peninsular Malaysia) to the IPPs.
This is regardless of whether the plant is producing and IPPs are paid based on Equivalent Availability Factor (EAF), on its monthly testing.
"It was revealed that the initial financial model of IPPs was done above board at the EPU with TNB and SESB having no chance or choice to negotiate the tariffs with the IPPs.
"As for the capacity payment, as long as IPPs are on standby, TNB/SESB are obligated for full payments on the capacities of the plants every month based on the tested EAF, and not based on the consumed amount,” she said.
"This explains why every IPP in Malaysia, including those in Sabah, are making guaranteed huge profits of multi-billion ringgts every year. It is very unfortunate that TNB/SESB have to pass higher tariffs on to the consumers.''
She said the Ministry allowed it to happen below their nose, by "robbing the poor People and enriching the rich."
Chua said the Minister Datuk Peter Chin's answer in the Parliament that the Government is not subsidising the IPPs is very much unacceptable.
"The PPAs have already ensured huge profits for the IPPs. Furthermore, it's pointless to argue that Petronas can make more profits by its sales in the international market and its revenue foregone or lost by the Petronas for the benefit of the people. Then why isn't Petronas morally obligated to the Malaysians in Sabah when Sabah is an oil Producing State?"
"In reality, isn't it true that any increase of gas or fuel prices is passed on directly to TNB/SESB rather than the IPPs, with the People suffering the increase of tariffs," she said.
Chua said the outcry by the people of Sabah seemed to fallen on deaf ears and the Ministry, TNB/SESB would continue to mislead the people with the untold truth.
She urged the Ministry to reevaluate its role in the Power supply in Sabah as the People have suffered enough, especially being the poorest state in Malaysia, amidst with continuous power disruptions.
Daily Express
Thursday
28 July, 2011
Page 9
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