KUALA LUMPUR, Jul 13 – Tenaga Nasional Bhd says it believes that competitive bidding for power plant projects would bring the best value to the industry. TNB President/ CEO Datuk Seri Ir Azman Mohd said the company shares the views of the Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin on the need for transparency in the tender process.
He was commenting on Yeo’s announcement yesterday that the federal government decided to cancel four independent power producer (IPP) contracts that had been given by the previous administration. Those contracts, she said, were directly awarded and looking ahead, the ministry will only go through open tenders.
Speaking to reporters after a meeting with the Council of Eminent Persons (CEP) at Menara Ilham today, Azman said TNB is pleased to share thoughts on the way forward and the reforms needed for the utility sector.
“CEP has been open to listening to our views, and they are very knowledgeable on the power sector and what is best for Malaysia. We would continue to work together with the government to provide the best value for Malaysia. It is good for Malaysia that we do not work on emotions but make rational and knowledge-based decisions,” he added.
On whether the industry reform could bring down the electricity tariff, he said there is room for improvement but the main factor driving costs is the fuel price, which is beyond TNB’s control. He said coal and gas prices fluctuate according to global pricing and this needs to be managed and handled well, noting this is a common challenge not only in Malaysia but globally.
“The industry should re-look at power plants and also the policy on the margins that we should be having. The electricity industry is actually a trait of three things which are security, affordability and sustainability. Between the three, we have to find the most optimal balance to do that,” he added. — Bernama