The robber Moguls behind the IPPs...

Electricity deregulation really started in UK in the early 1990’s. It spread worldwide and Malaysia too deregulated, but only its Generation business. This was done by giving licenses to Independent Power Producers (IPPs). Which should have resulted in reduced electricity cost to the consumer.

But that’s not what happened. In Malaysia’s topsy turvy wonderland, deregulation increased the cost to the consumer! This was because Tenaga was forced to buy electricity from IPPs who charged more for the electricity than if Tenaga produced it itself!

It was the BN government that ‘negotiated’ such deals with the IPPs. Either they are criminally incompetent, awfully stupid or they are corrupt. You may take your pick. It may be a combination of all three.

So who are these IPPs?

1. Genting Sanyen,
2. YTL Power,
3. Malakoff,
4. SEV,
5. Prai Power,
6. Powertek,
7. GB3,
8. Tanjung Bin Power and
9. Kapar Energy are among the two dozen or so IPPs in Malaysia.

All of the above are owned by the Genting Lims, Francis Yeoh, Syed Mokhtar and Ananda Krishnan. The usual suspects, of course. The connected businessmen who get most of the big deals. Who will know how to take care of their political benefactors.

YTL Power’s profit for 2010 was more than RM1.6 billion on revenues of RM13 billion.

Malakoff in 2009 had a profit of RM380 million on revenues of RM5.6 billion.

Powertek had revenues of RM1.34 billion and a profit of RM450 million.

So Francis Yeoh makes RM1.6 billion and Ananda Krishnan makes RM450 million from his IPP while collecting subsidies from public money. It is essentially a transfer of funds from the people’s pockets to the IPP’s vaults, through TNB, aided and abetted by the BN.

When this economic joke of a system is about to come crashing under its own silly weight, the BN solves the problem by raising the electricity tariffs, making Malaysians pay for it.

Now here is a strange thing, Thai power producers do not get subsidies. They have to buy fuel at market prices. We know that petrol costs more in Thailand, which is why they are always trying to fill up their tanks in Malaysia. So does gas cost more in Thailand. Despite this higher cost of fuel, Thai power producers sell electricity at a lower price than Malaysian IPPs sell to TNB.

Ask the BN, and they will tell you that there is clearly something wrong; with the Thais! Why aren’t they trying to grab as much public money as possible, as fast as possible like us; the BN no doubt wonders.

TNB is a GLC, declassify the contracts

Meanwhile, Malaysian’s own version of medieval German Robber Barons (who were known for extorting huge tolls from passing ships and travellers), get to keep their subsidies, and, their unnatural, undeserved profits. They are despicable fellows who prey on the helpless. Big business, controlled in Malaysia by a small number, are now become adversaries of the people. They extort unbearable tolls and they bankroll and prop up a regime that is beggaring the nation. No longer can they fake innocence and hide in the shadows.

TNB had a profit of RM4.1 billion on revenues of RM32 billion in 2010. This is not enough? They still need to raise the electricity tariffs?

Why further burden a nation that is already reeling from rising prices. Che Khalib(right), their CEO, had a big smile on in today’s newspapers. He will get a bigger bonus this year.

You will get a higher electricity bill and will pay more for everything else. You will suffer, Che Khalib and his bosses will celebrate. That’s life under the BN’s incompetent, corrupt thumb.

As what can only be considered a joke, TNB’s theme for their 2010 annual report was “Powering A Sustainable Future”! In it, they claim to be committed to ensuring transparency in all they do. In which case, they should immediately make public the IPP contracts. But they will not, because it is clearly a dirty secret. A secret so ugly perhaps, that it alone could cost BN the election. No transparency here, just false slogans.

Peter Chin, under whose Ministry TNB is parked, claims that he cannot release the IPP contracts because it is between two private entities. But TNB is not a private entity, it is mostly government-owned. And the subsidies given to the IPPs are not private monies, they are public funds!

Another 5 years of the Barisan’s rule, and Malaysia will become an economic basket case. Where ruthless connected businessman live off a suffering citizenry while cosying up to the ruling elite. Where greed and self-serving politicians and policies are the order of the day.

If there is to be change, it had better be now.- Ismail Dahlan

source:Malaysia Chronicle

Anwar uses IPP contracts to attack Najib administration

Who says govt cannot declassify IPP agreements?

It's the government who moved for the IPPs' involvement. Now they look powerless to stand up to them, just for a simple reason that these barons are giving out big 'ang pow' and throwing millions to keep BN safe in Putrajaya...

cheers.