08 June 2011

Apa nama's blood sucking IPPs....

Many,many years ago, our country suffered the worse outage in our nation's history. We were without electricity for many days. Manufacturers lost a lot of money. Industrialists were screaming their heads off and their voices reached Sri Perdana, the abode of the 4th PM then.

He came up with the solution. We have this problem because TNB has a monopoly. Monopoly is not good. Dependency on one supplier isn't strategic. It can be outright dangerous not to mention can cause untold economic damages if the system breaks down.

Let's deregulate the electricity industry he proclaims. So Ananda, YTL, Genting and others came rushing in. we can supply electricity sir. But we need to have iron clad agreements so that our investments are well covered. We must have a guaranteed purchase from TNB at secure prices.

But sir in order to generate our current, we need cheap fuels. Otherwise we bungkus or consumers will have to pay more.

Never mind says sir, I control PETRONAS. I will ask them to sell you natural gas at subsidized rates. And so government pays subsidies up to RM 19 billion a year.

As many people now know, the electricity we consumed passes through 4 stages. Generation, transmission, distribution and retailing. But boss, we will only generate electricity. We won't go into transmission, distribution and retailing. These are costly. Tarak untung. Kadang kadang untung.

In other words, TNB which has to invest in all 4 stages can offer us cheaper tariffs, but the IPPs awarded license which offer only generation of electricity cannot. How can this be? Apa nama? Macam mana?

Deregulation created an opposite effect in Malaysia. We ended up having to pay higher electricity tariffs because TENAGA was forced to buy electricity from IPPs who charged more for the electricity than if Tenaga produced it itself!

We come now to the stupid remark by the minister who says the government is powerless to reveal details of the PPA. Wasn't it the government that 'negotiated' the deals with the IPPs? So why can't we have access to the details?

Who were the first entrants to the IPP business?

Genting Sanyen, YTL Power, Malakoff, SEV, Prai Power,Powertek, GB3, Tanjung Bin Power and 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. These were the usual suspects consisting of the connected businessmen who get most of the big deals.

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.

What make these blood-sucking IPPs so lucrative?

First, these IPPs have contracts to supply on take-it-or-leave-it basis. In other words, they will generate at the rated capacity and supply to TNB whether or not TNB wants the electricity.

Second, the IPPs are protected should gas prices go up. They have "pass through" cost clauses, meaning if gas price goes up this is immediately billed to TNB, that is, us.

Third, at the time when the first few IPPs were created, they sold electricity at 15-16 sen per KW when at that time TNB could generate its own at 12 sen.

It is essentially a transfer of funds from the people's pockets to the IPP's vaults, through TNB, aided and abetted by the government. But the imbecilic minister says we can't reveal.
Of course we can't reveal because that would expose the scandalous amount of profits these business luminaries make.

Look at the Thai power producers. They do not get subsidies and have to buy fuel at market prices. Fuels cost more in Thailand.

Yet, despite the higher cost of fuels, Thai power producers sell electricity at a lower price than Malaysian IPPs sell to TNB. Apa nama punya economics ini?

Peter Chin, the minister in charge of TNB must be mentally deranged. He claims that he cannot release the IPP contracts because it is between two private entities.

1.TNB is not a private entity; it is mostly government-owned.

2.the subsidies given to the IPPs are not private monies, they are public funds!
- Datuk Ariff Sabri


TNB’s latest annual report,shows Che Khalib’s total remuneration last year was RM1.1mil, of which RM600,000 was his annual salary.

Che Khalib earns RM1.8 million a year in total.While paying the big chiefs the above amount, in the same year, TNB kept its minimum wage at RM750 a month, only slightly higher than POS Malaysia's RM635.

Gaji saja tinggi, tapi masih tunduk kepada penyamun2 IPP ini. Apakah kita bayar gaji supaya dia mendiamkan diri. Lu pikiaq mai.....



Anonymous said...

Tapi bro,UMNO/BN harap kepada penyamun2 ini sajalah untuk biayai kempen piliharaya mereka. Mereka itulah yang menjadi juruwang.

Tapi,penyamun2 juga pandai,duit yang depa bagi tu bukan daripada poket penyamun tapi diambil daripada duit rakyat juga.

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