Govt on TNB’s delay in signing PPA


PETALING JAYA: The Government yesterday explained that YTL Power Generation Sdn Bhd had not signed the power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) due to conditions precedent (CP) set by TNB on its PPA.

The Ministry of Energy, Green Technology and Water (KeTTHA) said in a statement that TNB was “challenging the direction issued by the Energy Commission (EC) to extend the PPA. Hence, TNB had submitted the direction for judicial review”.

Under Section 50E of the Electricity Supply Act 1990, failure by TNB to comply with the direction is an offence and, if convicted, TNB would be liable to a fine of not more than RM200,000 or imprisonment of not more than two years, or both.

The PPA is for TNB to buy electricity generated by YTL Power’s 800MW power plant in Paka, according to a report in the Sun.

The Government, via the EC, had conducted a competitive bidding exercise last year to procure additional power supply on a short-term basis by extending the PPA of the first generation independent power producers (IPP), said the report.

Three IPPs, namely Port Dickson Power Bhd (PD Power), Kuala Langat Power Plant Sdn Bhd and YTL Power, were selected.

PD Power and Kuala Langat Power have since signed the PPAs with TNB.

However, on Monday, TNB said it had applied for leave to commence judicial review proceedings against the EC and the Energy, Green Technology and Water Minister at the High Court.

It said the application was in relation to a direction dated April 7, issued by the EC to TNB which compels TNB to remove the incorporation of CP required by TNB in the proposed new PPA between TNB and YTL Power. The direction issued by the EC follows a direction issued by the minister to the EC on April 1, said the report.

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.

SEE MORE: Tenaga Nasional takes minister to court