SHAH ALAM, 23 May: The current profit enjoyed by Tenaga Nasional Berhad (TNB) could be doubled and bring about higher savings to the government if the operation contract for private Independent Power Producers (IPPs) is terminated.
This is because the profit enjoyed by IPP companies at the moment is more than TNB’s profit even though IPPs only generate a far lower energy supply compared to TNB.
The Member of Parliament for Shah Alam, Khalid Abdul Samad, said that this is worsened as TNB has to cover various costs, like the number of employees, compared to the IPPs.
“Among the reasons why TNB does not enjoy such benefits is because they buy energy from IPPs at a higher price and sell it to the people at a much lower price. That is why TNB has to increase electricity tariffs.
“The profits earned by TNB are channelled to IPPs and this move harms the economy and only profits some groups.
“If there are no IPPs and all IPP power generation plants are acquired by TNB or the government, then the need to buy energy at a higher price is no longer necessary and it will ensure better profits for TNB,” said Khalid when contacted by Selangor Kini today.
Khalid said that the government would also not need to pay subsidies, as enjoyed by IPP companies, like what is presently practiced.
“The people have to understand that the worsening economic situation and increasing debt is due to policies implemented by Barisan Nasional (BN) and they place the interest of the country second to the interests of cronies,” added Khalid.
The concession agreement between the government and IPPs caused the country to experience losses, when RM19 billion is allocated each year to pay subsidies to these companies.
Earlier, in the book ‘Memoirs of Tan Sri Ani Arope’, the former CEO of TNB revealed that the blackout incident in 1992 was planned for the purpose of creating IPPs in the country.
The 142-page book also tells of the beginning of the IPP, where the Economic Planning Unit (EPU) at the time, controlled by the (former) Prime Minister, Datuk Seri (now Tun) Dr Mahathir Mohamad, forced TNB to hand over land in Paka, Terengganu and Pasir Gudang, Johor, to a third party for the construction of power plants.
