No plan to make public the contents of power agreements

KOTA KINABALU: Parliament was told that the Ministry' of Energy, Green Technology and Water has no intention to make public the contents of the Power Purchase Agreement (PPA) contract between Tenaga National Berhad (TNB) and Independent Power Producers (IPP) because it did not involve the Government.

Member of Parliament for Tawau Datuk Chua Soon Bui had asked whether the Ministry has any plan to make public the PPA contract details to allow more accountability and transparency.

On whether public views would be taken into the recommendations by "MY POWER Corporations" on the review of the future IPP contracts, Minister Datuk Seri Peter Chin Fah Kui said the Government set up the corporation to implement steps to study the electricity supply to industry users as a long term measure.

One of the other initiatives was to review the terms of reference of the PPA first generation IPP. The Government will ensure that the PPA for the second and third generations will be fair for all parties.

Chua told the Ministry to play its role in ensuring the PPA not benefit the IPPs only while TNB or TNB/SESB in Sabah have to shoulder the excessive costs on payments based on the capacity that are built but not on what are produced and consumed by the consumers irrespective of whether the plants have broken down or not, or whether it has full capacity output.

"The eventual costs will be borne by the consumers with tariffs increased and IPP with guaranteed huge profits. The people, the consumers and the business sectors will always be on the losing end because of these lop-sided PPAs," Chua said.

She said since the first generation of IPP will expire in 2015/2016, and the new ones take another five years to build, any delay on the new recommendations and negotiations on the second or third generation IPPs would benefit the stakeholders with its old PPA, the government would fail its duty to protect the interests of the people and business sectors.

She also urged the Ministry to explain why it is not consistent with its green energy policies and commitment to reduction of CO2, while two more coal power plants will be built in the second generations of IPP, one in Tanjung and one in Tanjung Bin, Johor.

"Why Malaysia is not using solar energy in the second or third generations of IPP when Malaysia is one of the biggest producers of solar panels and cells.

Chua, who is also Sabah Progressive Party (SAPP) Vice President told the Ministry to rectify the shortfalls of the electricity capacities especially by IPPs in Sabah.

"The people can no longer tolerate the breakdowns of the IPPs that cause frequent electricity disruptions, and yet no penalty is served on the IPPs.

"Worst of all, the people of Sabah have to shoulder the increased tariffs through the inefficiency of PPA," said Chua.

Daily Express

Sunday, October 9, 2011

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