2 get nod in principle for Bakun, cable jobs

2 get nod in principle for Bakun, cable jobs
Published: 2008/12/04
BT

Malaysia has given approval in principle to Tenaga Nasional Bhd and Sarawak Energy Bhd to carry out the Bakun Dam and undersea transmission projects, Energy Commission chairman Datuk Pian Sukro said.

Pian spoke at a luncheon organised by Citi Investment Research in Singapore on Monday."However, given the slower demand outlook now, first transmission from Bakun is now expected only by 2015 instead of 2013," Citi analyst Ng Yong Yin said in a report yesterday.In addition, there are plans to govern the electricity supply industry under one ministry or under one body.This will help facilitate a smoother and faster administration.

"The governance of the electricity supply industry is fragmented, with several ministries and government agencies overlooking different but related segments of the power industry."For example, the Economic Planning Unit approves new power projects and independent power producers (IPPs) and the Ministry of Energy, Water and Communications (to whom the Energy Commission reports) overlooks energy efficiency, tariff and capacity planning," Ng said.

The government is also unlikely to reintroduce the windfall tax. The tax had been a way to prompt contract renegotiations between the IPPs and Tenaga.The Energy Commission will now lead any renegotiation of power purchase agreements, if any.Malaysia's spare power capacity, currently around 40 per cent, will rise to 47 per cent next year when new plants in Jimah and Port Dickson, both in Negri Sembilan, are commissioned.