Tenaga Nasional takes minister to court

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PETALING JAYA: Tenaga Nasional Bhd (TNB) has applied for leave to commence judicial review proceedings against the Energy Commission (EC) and the Energy, Green Technology and Water Minister over a new power purchase agreement (PPA) it is negotiating with YTL Power Generation Sdn Bhd.

In a filing with Bursa Malaysia on Monday, TNB said its move was in relation to a direction dated April 7 that was issued by the EC to TNB, which compelled TNB, “to remove the incorporation of conditions precedent required by TNB” in the proposed new PPA with YTL Power.

“The direction was made pursuant to the minister’s direction to EC on April 1,” The Star quoted it as saying.

TNB through the judicial review, is seeking a written order from the court to quash the EC’s direction as well as the minister’s direction, and a declaration that both their directions were ultra vires, or beyond the issuer’s legal power or authority, as provided under the Electricity Supply Act 1990 (ESA) and the Energy Commission Act 2001.

Failure to comply with the EC’s direction is a punishable offence under Section 50E of the ESA, which could result in TNB being fined not more than RM200,000 or jailed for no more than two years, or both, The Star reported.

As such, TNB wants the EC’s direction be stayed pending the hearing and determination of the judicial review proceedings on its merits.

Aside from legal and management costs, TNB said the judicial review proceedings would not have any material financial and operational impacts on TNB.