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TNB, stop burdening the consumer through IPPs

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SM Mohamed Idris Dec 16, 2010

The Consumers’ Association of Penang (CAP) calls on the government to end the outsourcing of electrical energy production to independent power producers (IPPs) as it has been a drain on the resources of Tenaga Nasional Berhad (Tenaga) and a burden to the consumers.

We believe that Tenaga, with decades of experience in energy production unlike the IPPs who had no experience when they entered the industry, has the capacity to produce energy more efficiently and at a lower cost. Moreover, profits coming to Tenaga, a government-controlled company, will benefit the people and the nation rather than private companies.

Access to energy is a basic human right and of national security and therefore its production and supply should not be left in the hands of profit-hungry private companies. If these companies face financial problems then the government will be forced to bail them out with public funds to ensure continuous availability of energy. The authorities should learn from the failed privatised projects locally and internationally and not repeat the mistakes.

It has been reported that negotiations are going on between the government and five IPPs for review […]