KUALA LUMPUR: YTL Power Generation Sdn Bhd has yet to sign a power purchase agreement (PPA) with Tenaga Nasional Bhd
(TNB) due to conditions precedent (CP) set by the latter.
“The Government, via the Energy Commission (EC), had conducted a competitive bidding exercise in 2015 to procure additional power supply on a short-term basis by extending the PPA of the first generation independent power producers (IPP),” the Energy, Green Technology And Water Ministry (Kettha) said in a statement.
It added that three IPPs, namely Port Dickson Power Bhd (PD Power), Kuala Langat Power Plant Sdn Bhd (Kuala Langat Power), and YTL Power Generation Sdn Bhd (YTL Power) fulfilled the conditions set by EC and, therefore, were selected.
Kettha said PD Power and Kuala Langat Power had signed the PPAs with TNB but YTL Power had not done so due to the CP set by TNB on its PPA.
“TNB is also challenging the direction issued by EC to extend the PPA. Hence, TNB had submitted the direction for judicial review,” it added.
YTL Power had been given an extension of two years and 10 months from March 2016 to December 2018.
In a filing with Bursa Malaysia yesterday, TNB said it had applied for leave to commence judicial review proceedings against the EC and Kettha at the high court.
The utility giant said the application was in relation to a direction dated April 7 issued by EC to TNB.
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.
As such, TNB wants the EC’s direction be stayed pending the hearing and determination of the judicial review proceedings on its merits.
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