KUALA LUMPUR: Tenaga Nasional Bhd (TNB) hopes that the re-negotiation of power purchasing agreements (PPAs) can be concluded by June, president and chief executive officer Datuk Seri Che Khalib Mohamad Noh said yesterday.
“The negotiations have started between the independent power producers (IPPs) and the committee comprising officials from the Economic Planning Unit, Finance Ministry and Energy, Water and Communications Ministry.
“What the committee is doing now is gathering information, probably to look at how they want to start the negotiations. I was also made to understand that some IPPs have submitted proposals to the Government as to how they want to provide the solution for the industry,” he said.
TNB, however, was not part of the committee, he said when asked about the progress of the negotiations at a press conference after the launch of TNB’s e-application system at Wisma TNB in Petaling Jaya.
On the windfall tax, Che Khalib said the rules were that as long as the IPPs could not resolve the issue of re-negotiating the PPAs, they would have to continue paying on a monthly basis.
“They have paid the dues for last month and if they don’t resolve it, they will have to pay until June 2009,” he said.
June 2009 was the date given by the government to IPPs to come up with the proposal to the government on how they want to provide the solutions.
TNB through its key subsidiaries, TNB Janamanjung Sdn Bhd and Kapar Energy Ventures Sdn Bhd, made its first windfall profit levy payment of RM3.653 million and RM1.997 million respectively for the month of July 2008.
TNB Janamanjung is a wholly-owned subsidiary of TNB with a generating capacity of 2,070 megawatts while Kapar Energy Ventures with a generating capacity of 2,420 megawatts is a 60%-owned subsidiary. – Bernama