Chua: Q&A on power plants at parliament

Kuala Lumpur, Dec 15, 2009: Replying on issues raised by Datuk Chua Soon Bui (MP Tawau) in the ministry committee debate, the Minister of Energy, Green technology and Water, Datuk Seri Chin Fah Kui said that for early power plants based on diesel and early MFO, failure to supply electricity as directed by the SESB only affects the availability factor which will result in penalties in the form of reduced payments if the rate of capacity availability falls below the agreed level. For matters relating to the "Failed Despatch Instruction" in Energy Purchase Agreement for the new power plants, additional clause has been included on the supply of electricity as directed. The IPP will also receive a reduced payment for the month concerned. He was replying to the issue of penalties imposed on IPPs in Sabah that fail to supply electricity to the system, as raised by YB Datuk Chua Soon Bui (MP Tawau).

Regarding the location and date of implementation of additional generation capacity in Tawau by Sime Darby, the Minister told the House that an extension of 20MW supply through mobile generator sets has been planned to be placed in the PPU Pasir Putih, Tawau to help improve the supply in Tawau. A10 MW generator set has started supplying electricity on 15/11/2009 while another 10 MW will begin operating by 24/12/09. In addition, maintenance on the Serudong IPP’s11 MW generator set damaged since June 2009 is in process and it will start operating again in April 2010.

The Minister also said that the exemption of payment of electricity bills of less than RM20 per month is an initiative of the Government to help the low-income group. Exemption is given to all eligible consumers in Peninsular Malaysia, Sabah and Sarawak and it is funded by the Ministry of Finance with effect from October 1, 2008 to 31 December 2009. The government is considering to continue this exemption until December 2010. Since this measure was introduced, the Government has to bear the average monthly cost of RM11.95 million, benefiting about 1.05 million users.

Datuk Chua also asked about energy efficient programs and IPPs to generate renewable energy in Sabah, particularly Tawau and the penalty imposed on IPPs that cannot generate energy as required. The Minister in his reply said that under the program of Small Renewable Energy Power (SREP), Renewable Energy Power Purchase Agreement (REPPA) was signed without setting any penalty on the generator as only very small supply is generated under SREP compared with IPPs using fossil energy sources.

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Debate Committee Stage - Rujukan 00100 Energy facilities and Renewable Energy Programme

I would like to know from the minister of Energy, Green Technology and Water:-
(1) List the number, names and the capacity of IPP (Independant Power Plant) in various parts of Sabah.
(2) The Terms and Conditions for each IPP,
(3) When the IPPs failed to supply the power as stipulated, whether the IPPs had to pay compensation to SESB or to the consumers for their failure in supplying power ? As reported by the SESB manager, the main problems encountered in disruptions of power supply in Sabah in the recent years were due to the problems from the IPP leading to insufficient supply,
I would like to know what is the rational while IPP is providing the excess power, TNB is obligated to pay, but when IPP generators broke down regularly, like what has been happening in Sabah, no penalty is imposed.

(4) Has the ministry any plan to standardize the excess power supply in Semenanjung Malaysia, Sabah and Sarawak, if yes, when and how much excess? Is this true that Sabah has negative power supply excess, whereas Sarawak has 20% excess and Semenanjung Malaysia has 50% excess?
From the report, Sabah has 7% excess power, but with the power disruptions happening in Sabah everyday, it's not practical to say that Sabah has any power excess at all, whereas Sarawak has 20% "true" power excess and west malaysia has 50% power excess. With the power excess of 20% in Sarawak and 50% power excess in Semenanjung Malaysia, How much does it cost the TNB or the government to pay for the excess? Has the Ministry any plan to standardize the power excess in Sabah, Sarawak and west malaysiaq. If so, how many %?
(5) With the upgrade of power from Sime Darby in Tawau, How many MW will be build , Where and when will it be completed?
(6) I would also like to know whether it's true that 50,000 to 80,000 families from Sarawak who used less than RM20/month will be given free? Whether it is true that TNB will bear the cost of subsidizing more than RM 1 million/month or more than RM 12 Million/year to the prople in Sarawak? What is the rational especially when Sabah being the poorest state and with the highest power disruptions in the country are not given such subsidy or same considerations? I hope TNB will perform the same social responsibility in Sabah.

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