Malaysia Today - Your Source of Independent News
Malaysia Today - Your Source of Independent News |
- Well-connected IPPs, Badly Conned Consumers
- Takeover the IPPs, Not Renegotiate
- ‘The Gods must be crazy’ in Malaysia
- Crusaders for Cruelty
- Powerless or Powerful?
- A riposte to Mukhriz's defence of brain drain policies of the father
| Well-connected IPPs, Badly Conned Consumers Posted: 02 Jun 2011 01:24 PM PDT After being "royally screwed" by the IPPs, of course TNB passes the cost on to us consumers. The other method for TNB to turn around is to encourage higher consumption of electricity which is why the hectic rush to build more and more hydroelectric power dams all over the place. By Dr Kua Kia Soong, Director of SUARAM
As a result of the 1992 energy crisis during Mahathir's term in office, Independent Power Producers (IPPs) were foisted on the country and TNB as a fait accompli. These well-connected IPPs have managed to secure a pretty good deal out of the power purchase agreements with TNB and brokered by the Economic Planning Unit. The problems and contradictions within TNB have been exacerbated as a result of the entry of these IPPs and this has affected TNB's share market performance through the years. I brought up the scandal at Tenaga Nasional in Parliament in November 1990 alleging that this privatised energy was riddled with corruption, cronyism and mismanagement. This and other aspects of the Malaysian energy industry can be read in my 1996 title: "Malaysia's Energy Crisis: the Real Issues". Twenty years later, we are counting the costs and still bearing the burden of the BN government's cosy relationship with these IPPs as reflected in the power purchase agreements contracted and the increase in electricity tariffs. For a start, the IPPs are getting fuel supplied by TNB who then use the IPPs to produce electricity and sell it back to TNB. So they should be able to control prices there too. But TNB is taking the risk but not the profit of operation. The prime minister announced recently that Bakun tariff is 6.5-7 sen/kWh. IPPs are selling electricity in Malaysia for at least 16 sen. In the US the hydro electric tariff is 1.2 US cents/kWh; in China it is US 1.2-1.5 cents/kWh.
The Failure of our Privatised Services While the IPPs have reaped millions through Mahathir's privatisation exercises, for privatisation to be in the rakyat's interest, certain criteria must maintain: (i) The privatised service must be cheaper and better than that formerly provided by the state. If not, what benefit is it to the people? Here, the IPPs have been relying on their connections with the ruling elite for access to licences and other conveniences, especially sources of funding. They have failed to get international banking sources and have instead relied on EPF, the pension funds of Malaysian workers for funding. The control over the EPF by genuine workers' representatives who invest the funds in their interests is long overdue. In terms of unit cost, the electricity which these IPPs produce is more expensive and thus fails the first criterion set out above.
Contradiction of Viability and Conservation Caught in the bind of the heavily IPP-biased power purchase agreements, TNB could only think of one way to be viable, namely, encouraging Malaysians to "use more power". Indeed in 1994, the executive chairman of TNB Tan Sri Ani Arope was quoted in the press as saying: "We hope to get more people staying in condominiums to dry their clothes using electricity." (The Star, 19 Oct 1994) This exposes the hypocrisy displayed by the government over conserving one hour's energy on Earth Day. Among the government's panic measures since the 1992 energy crisis when the Big Blackout happened, has been the indiscriminate granting of licences to IPPs to build power stations. The country was told that this excess capacity is a wonderful thing and that it can be exported: "IPPs generate, Tenaga buys. This is like buying under duress. We have excess power now. This doesn't solve stability problems. Also, the IPPs built stations at sites of their choice, not necessarily where they were needed and stable for the system, such as areas of high power consumption." (Sunday Star, 1 Sept 1996) The total lack of planning and a total energy policy was exposed when the Energy Minister suddenly announced in late 1994 that TNB would maintain 70 per cent of power supply while the IPPs would be restricted to only 30 per cent. The price of TNB shares dropped so drastically because economic analysts could see that "Tenaga has been royally screwed." (Malaysian Business, 16 November 1994) TNB's plunge also affected the slide in the KLSE's Composite Index at the time. After being "royally screwed" by the IPPs, of course TNB passes the cost on to us consumers. The other method for TNB to turn around is to encourage higher consumption of electricity which is why the hectic rush to build more and more hydroelectric power dams all over the place. We can see why the government is in no great hurry to implement a national energy policy which encourages energy conservation.
Lack of Planning and Energy policy The country is told that excess capacity can be exported. The on-off submarine cable project to transmit Bakun energy to the peninsula since it was first brought up in the Eighties shows the alarming lack of planning and total energy policy. The on-off contracts with the aluminium smelters since the Seventies reveal the complete absence of concrete energy demand projections. If the highly toxic aluminium smelter projects are approved, we will no doubt see yet another protest by the people just as at Lynas and Bukit Merah. The hypothetical demand for Bakun energy by the Indonesians in Kalimantan likewise exposes the indiscriminate hunger for mega projects without the required feasibility studies and realistic demand projections. The Perlis power plant was also meant to supply excess energy to the Thais. But was there a study done to see if the Thais needed this power? And if they did need power, what was there to prevent them from making use of their own IPPs to do the job? IPPs are by no means a Malaysian innovation! The Bakun dam with its 2400 MW generating capacity and many more dams in the pipeline when the total demand in Sarawak is not more than 1000MW is another example of wanton profligacy. The World bank has recommended reserve margins of not more than 10 per cent otherwise all that plant is sitting idle and costing us a lot of money. Thus it looks as if those in power are more interested in making mega bucks out of the mega projects rather than a responsible and sustainable energy policy and plan. In Malaysia, we do not have a prudent energy policy. We do not even have a proper energy needs inventory giving us reliable data on the possible sources of renewable energy and detailed breakdown of domestic and industrial consumption. All that we are given by the Government whenever energy needs are discussed are total production and consumption patterns. This is not good enough.
A Golden Age of Mediocrity Disaffected by such a culture in our infrastructure ministries exacerbated by the racialist excesses of the New Economic Policy, many of our top engineers and scientists who were responsible for building the infrastructure in the first place have left in disgust. They are now helping other countries such as China, India, South America, and Eastern Europe to develop their industries, using their skills which could help Malaysian industries. Thus, while the rest of the world is powering ahead, with even countries like Vietnam and Cambodia aspiring to be the next tigers, we seem content to remain in what I call, "a golden age of mediocrity". |
| Takeover the IPPs, Not Renegotiate Posted: 02 Jun 2011 01:21 PM PDT Why are contract negotiations being carried out with IPPs which have been a drain on the resources of Tenaga Nasional Berhad (TNB) and a burden to the consumers? Why not let TNB take over the IPPs? By S.M.Mohamed Idris (President)The Consumers Association of Penang (CAP) is concerned that the government is already renegotiating with independent power producers (IPPs) whose contracts will be expiring soon. Why are contract negotiations being carried out with IPPs which have been a drain on the resources of Tenaga Nasional Berhad (TNB) and a burden to the consumers? Why not let TNB take over the IPPs? This is not a radical suggestion considering that in 1982 the National Electricity Board (the predecessor of TNB) took over the Perak River Hydro Electric Power company (PRHEP) and its subsidiary Kinta Electrical Distribution Co Ltd. PRHEP which built the hydro-electric station and dam at Chenderoh, was at one time the largest power supplier In 1976, National Electricity Board had also replaced the Penang Municipality in supplying electricity to areas serviced by Huttenbach Ltd, a private power company which had earlier been taken over by the Penang Municipality. TNB, with decades of experience in energy production has the capacity to produce energy more efficiently and at a lower cost than the IPPs. Moreover, profits coming to TNB, a government-controlled company, will benefit the people and the nation rather than private companies. |
| ‘The Gods must be crazy’ in Malaysia Posted: 02 Jun 2011 01:17 PM PDT Suddenly everyone is springing up as an authority of sorts in representing God. Some are even going the distance to be the interpreters of God. It is no surprise to be hearing from politicians today what the respective followers of a faith must do and to do it all in the name of their God.
By J. D. Lovrenciear
In this age and time, believe it or not, we have got ourselves all entangled in the God-war. When nations elsewhere are fighting tooth and nail to keep their territorial borders intact we who have no border wars are instead using God as the currency to pit one against the other over God related matters, i.e. religion.
We are trying by all means to rile people up within the country by raising issues and concerns that hinge on God-issues. We are so busy debating whether a Muslim or a non-Muslim can lead the country. Meanwhile other nations are coming together focussed on getting just the best man for the top job. We on the other hand are so God centred.
Other nations are busy battling erratic weather patterns to keep their crops but we are just too darn busy about issuing edicts and debating what this God is saying and the other God must listen. And so we had the Christian Bible fracas.
Suddenly everyone is springing up as an authority of sorts in representing God. Some are even going the distance to be the interpreters of God. It is no surprise to be hearing from politicians today what the respective followers of a faith must do and to do it all in the name of their God. Meanwhile other nations' politicians are busy seeking the support and agreement of followers – irrespective of which God they follow to believe their offer of socio, political, economic and environmental solutions.
In short we are playing God but other nationals are playing plain mortal man.
God-labels are increasingly given importance. That is already enshrined permanently in your IDs, Birth Certs and many more documentations. The State has become the monitor for God and needs to know in no uncertain terms which God label you carry. Other governments only want to know which is your country that you call homeland. It is just nationality for them but for us being a citizen is not enough; we must also have an official God label.
How you choose to pray to your God is also a preoccupation in Malaysia at national level. Politicians will not lose out in capitalizing on this God matter too. If it can be drummed up for political mileage it will, at all costs, be done. We have seen it in the past. We will continue to witness it in the future. In other countries it is purely a religious matter left to leaders of the respective faiths to lead their followers. For them it is never an issue. For us we are so God focussed that it is a biggie-sort of an issue that must be exploited.
Politicians must therefore stay clear and out of any God debate. Leave it to those who are qualified, sanctioned by the faithful and learned in their respective faiths.
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| Posted: 02 Jun 2011 01:12 PM PDT New and "improved" laws with enhanced sentences and fines are worthless without competent and impartial enforcement of said laws By Shenaaz Khan (President, Malaysian Animal Welfare Society) Rulers often give a rather realistic imitation of altruism. They purge pluralistic promises to mask their innate ruthlessness. In Malaysia, prominent among the false whiskers wearers is the Department of Veterinary Services. Of all the malingering and slothful Government agencies, the DVS has proven to be amongst the most ineffective and worthless of the lot. The perfect rot that they are, they appear to also be the most competent of liars. So marvellous is this prowess that they've consistently used it for decades to detract, defuse and dictate the welfare of animals in this inhumane country. With their moribund state of practices, dwindling with obsolescence, they have made dead sure that almost all animal abusers, animal killers and animal neglecters enjoy punitive immunity and eternal freedom. Of course, their blatant ineptitude has been aided by a government and system that thrives on corruption and cruelty. Datuk Dr Abdul Aziz Jamaluddin, the Director General of the DVS, is undoubtedly the proud product of such a government. He is utterly useless, besmirched and ever ready to cool simmering public opinion by spewing media friendly untruths! Case in point is the supposed BAN on dog shooting in Malaysia. In November 2010, following the ghastly council killing of a pet dog in Ipoh, Dr. Aziz smugly announced a ban on dog shooting in Malaysia. Animal lovers celebrated with hopeful hurrahs. How ignorant they were for Dr. Aziz was yet again doing what he does best - telling a barefaced lie. Truth be told, the ban merely applied to DVS officers. (Note: DVS officers have not shot dogs since rabies was eradicated some 50 years ago). The ban, however, DID NOT apply to council dog catchers, whom many a decent Malaysian would recognise as monstrous murderers of innocent animals. Alas, amidst his grand announcement and nauseating smirks of accomplishment, Dr. Aziz failed to ooze out this vital piece of information. So for all intents and purposes, the dog shooting ban was no ban at all! Thus, the statement by Agriculture and Agro-based Industry Minister Datuk Noh Omar on a shiny smashing new law holds very little promise for animals of this country. New and "improved" laws with enhanced sentences and fines are worthless without competent and impartial enforcement of said laws! But competence and impartiality is clearly beyond the skill set of the Malaysian government, hence their unrelenting reluctance to act against real criminals committing real crimes. The continued barbarianism perpetrated by councils and individuals speaks volumes of the government's effectiveness in combating cruelty. Periodical rhetoric on animal welfare, be it at open dialogues or closed door meetings, can best be described as political posturing and has no real value or worth. The Serdang kitten killer, the poodle abuser and the Batu Pahat Council dog catchers, all of whose hideous acts were videotaped, are still at large. Despite such gripping evidence, the DVS and the Attorney Generals Chambers seem to think bringing these criminals to book a rather superfluous exercise. And so these monsters continue to roam our streets, unpunished and unrepentant. And the grisly plight of animals remains unchanged. With Noh, Aziz and their repellent gang of callous colleagues at the helm of animal protection laws, cruel councils and animal annihilators will be allowed to further nourish the inhumane tide engulfing this country. And the crusaders of cruelty shall continue their wickedness with a wink and a nod from the powers that be. |
| Posted: 02 Jun 2011 11:58 AM PDT By Tony Pua The Minister of Energy, Water and Green Technologies, Peter Chin had earlier in the week expressed that the Government is helpless in "declassifying" the Power Purchasing Agreements (PPAs) between the Independent Power Producers (IPPs) and Tenaga Nasional Bhd (TNB) in the light of the demand by the public. The Ministry's reply to me back in 29 February 2009 for my parliamentary question said the exact same thing, which at the very least showed that they are steadfast and consistent in backing the interest of the IPPs. The Minister then had replied to me that "dokumen Perjanjian Jual Beli Tenaga (PPA) merupakan satu dokumen perjanjian antara dua entiti swasta, iaitu di antara Tenaga Nasional Berhad (TNB) dan pihak penjana bebas (IPP) yang terbabit. Di bawah perjanjian tersebut, kedua-dua pihak perlu memberikan persetujuan terlebih dahulu sebelum mana-mana kandungan perjanjian tersebut boleh diumumkan. Sekiranya pihka TNB bercadang untuk menamatkan perjanjian PPA tanpa sebab yang kukuh, TNB perlu memberi pampasan penuh kepada pihak IPP." The Ministry's reply to me on 23 March 2010 again emphasized the Government's sheer reluctance to right the wrong in the PPAs which make the rakyat pay significantly more for its electricity. "Kerajaan sentiasa menghormati sebarang perjanjian atau kontrak yang telah ditandatangani oleh pihak Kerajaan. Oleh yang demikian, Kerajaan tiada rancangan untuk merombak semula atau menamatkan kontrak Perjanjian Pembelian Tenaga (PPA) secara unilateral dengan pihak IPP sebelum tamat tempoh kontrak tersebut. Sebaliknya, pendekatan yang diambil oleh Kerajaan ialah supaya PPA tersebut dirundingkan semula.Memandangkan rundingan semula PPA merupakan perkara yang rumit dan memerlukan tempoh masa yang agak lama untuk menentukan hasilnya, ia akan ditangani secara berasingan." The "powerless" nature of the BN government when it comes to declassifying and renegotiating the PPAs, is in direct contrast to the "powerful" role it played to ensure that the IPPs were ensure astronomical profits. In a revealing interview published by The Star on 26 June 2006, former TNB chairman, Ani Anope who was "involved" in the power agreements with the IPPs had said: "There was no negotiation. Absolutely none. Instead of talking directly with the IPPs, TNB was sitting down with the EPU. And we were harassed, humiliated and talked down every time we went there. After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would." As for the pricing and terms of the contracts, "It was all fixed up. (They said) this is the price, this is the capacity charge and this is the number of years. They said you just take it..." Hence when TNB was forced to sign these lobsided PPAs, it was the Prime Minister's all-powerful Economic Planning Unit (EPU) which dictated all terms. But when it comes to making public these PPAs, its now TNB's own choice as a "private company" and there's not the Government can do about it. The responses from the Minister are at best "misleading" and at worst a lie, for the Government has a vested interest in not declassifying these contracts, for it was the BN government itself who dictated the terms of these contracts to be signed. Now it just does not want the public to know what it did, and the fact that it prioritised the astronomical profits of these IPPs at the expense of the man-on-the-street. In fact Ani Anope disclosed that an agreement has been struck between TNB and an IPP, understood to be Genting Sanyen for the former to purchase electricity at 12 sen per kWh. However the "EPU said that unless the IPP raised its price, the contract would not be given to the IPP. So he got it for 14 sen per unit," while other first generation IPPs got 16 sen per kWh. Now that the interest of the IPPs have been served, the Government reverts to its meek and timid role using the excuse that its an agreement between "private entities" and that any renegotiations can only be done after the existing contracts expire. On the contrary, as there is no "contract" between the Government and the rakyat, the Government can choose to raise electricity tariffs any time it so chooses, even if it were to mean that these IPPs were to continue to profit at the expense of increased sufferings of the rakyat. The Prime Minister, Najib Razak must demonstrate moral and economic leadership by doing what is right and just for the people, instead of dithering over the declassification of the PPAs as well as their renegotiation. Otherwise, all the rhetoric of "transformation" becomes just a facade for continuity and business as usual, where political cronyism comes first.
TONY PUA is DAP National Publicity Secretary and MP for Petaling Jaya Utara |
| A riposte to Mukhriz's defence of brain drain policies of the father Posted: 01 Jun 2011 09:30 PM PDT He states that the NEP serves to "eradicate poverty, irrespective of race''. I believe we need to be convinced that the implementation matches the rhetoric. Sometimes it appears like "eradicate (some) race irrespective of poverty". By Ice Cream Seller Having got somewhat tired of the cesspool that has become of our politics, I found something to whet my appetite in reading Deputy Minister Mukhriz response to Shaun Tan's essay (World Bank 2011 - Brain Drain). Reading the writings of his (Mukhriz's) sister Marina, it is difficult to believe they are siblings! Maybe she took after her mother! Coming back to Mukhriz's article, he states that the NEP serves to "eradicate poverty, irrespective of race''. I believe we need to be convinced that the implementation matches the rhetoric. Sometimes it appears like "eradicate (some) race irrespective of poverty". He contends that 70 % of our economy is private sector driven and not affected by NEP type policies. Then why can't all private sector companies bid for government projects or contracts? Take for example private sector developers. Can they sell their houses without imposition of a percentage for Bumiputras by local councils? Take the MNCs. Can they employ their management staff free of quotas? When I got my first job in Malaysia, my expat MD told me that I got the job in part because they couldn't find a "chicken with teeth' (as he put it). That was in 1981!!!!! He writes that he is pained to see structural discrimination being practised by those in the private sector. No doubt, discrimination exists but let's look at the underlying reasons. After independence for 53 years, we are capable of looking at the larger picture. Private sector organisations are driven to make profits and they will employ people, consultants, systems that help meet that objective foremost. The ones most hungry, capable, honest, diligent, loyal and competent are always sought after. A competent Malay, capable Chinese, diligent Indian, loyal Eurasian put together in a team can be formidable. Even if one has one leg, 12 fingers or 3 kidneys, is he up to it and can he deliver? This begs the question - who are hungry, capable, honest, diligent, loyal and competent? I suppose it depends to an extent through which lens one looks through. In the case of Ibrahim Ali, the lens will be as opaque and dense as that between his ears. He attempts to have us believe that "the public sector (as the name implies) is open to public scrutiny whereas the private sector is 'kept nice and private'. For starters, the public sector is synonymous with the OSA to many. We would like to scrutinise the accounts for example of some of the ministries - eg what it costs to run the NS. Private (without govt. involvement) companies are not necessarily 'private' in many instances. Private sector companies which are listed are under very public scrutiny. On the contrary, 'public'corporations like Petronas are kept very private!! An assertion is made that the wealthiest 20 in Malaysia are dominated by one race but argues that this is because of the conducive environment created by BN. With due respect, it should be stated as "DESPITE the environment created by BN". As I see it, with all the obstacles put in the way , they made it. It should be remembered that many of our 'businessmen' make a handsome sum clearing 'obstacles'. Tellingly, he states that the big corporations that secured gaming and telecommunication licences SURELY DID NOT GET THEIR BIG BREAKS PURELY ON MERIT ALONE!!!!!! THEY WERE GIVEN IN EXCHANGE FOR THEIR IDEAS, ENTREPRENEURSHIP AND TAXES. That says it all doesn't it? What great idea is there in gaming? Was the exchange just ideas, entrepreneurship and taxes? Deputy Minister Mukhriz refers to a pea to a durian example when relating to Singapore and Malaysia. To a degree he is right. But let's not forget that "pea'' was once part of our durian tree. In a biblical context, Jesus (Nabi Isa) asserted that if the tree bears bad/no fruit, cut the tree!!!! (Which is what I did to my durian tree at home after waiting for years for it to bear fruit. Should have called it the NEP tree!) Towards the end of his article, he postulates that the government has to help rural folk keep up with the Joneses. I do believe most want dignity, basic amenities that work, good education, health services more than keeping up with the Joneses - or the Zakarias and Toyos. Finally, he touches on the issue of corruption - by pointing the finger at the 'briber'. At least we agree that it takes two to tango. But let's stop the music and haul both the dancers into the sin bin. After all, the Mufti of Perak in his wisdom has outlawed the Poco Poco - let's extend it to the tango. Haramkan 'tango'! What say you Mufti? |
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