(Petaling Jaya, Tuesday): Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik should penalize both TNB and IPPs for the 8,000 complaints of power cuts are received each month, despite sufficient supply and a robust and stable power grid. Keng Yaik had said that there is no excuse for power cuts when TNB was approved an increase of 12% in tariff last year and there was sufficient electricity being generated, with an energy reserve of 42%.  

Further in 20056 alone, both TNB and IPPs have benefited RM 11.7 billion in gas subsidies from Petronas. Whatever the excuse given by TNB, such as needing high capital expenditure to replace old sub-stations and change old cables, consumers affected by power cuts must be paid compensation. Any failure to do so would allow TNB to escape unpunished for poor service. Following the electricity tariff hike, TNB has a responsibility to improve system reliability, efficiency and quality of service. 

With TNB’s net profit for its third quarter ended May 31 increasing by 175% to  RM 1.09 billion compared with a net profit of RM 395 million last year, TNB can no longer say that it does not have money. For its fiscal nine months, net income reached RM 3.89 billion against a net profit of RM 1.4 billion a year before. 

IPPs should also bear the burden in view of the huge profits earned at the expense of huge gas subsidies provided by Petronas and Malaysians. For its financial year ended March 31, 2007, national oil corporation provided TNB with RM 5 billion in gas subsidies and IPPs RM 6.7 billion.  

In other words, IPPs benefited more than TNB in buying cheap gas from Petronas at subsidized rates. Is it in the national interest that IPPs should benefit RM 6.7 billion in gas subsidies in 2006 and likely more in 2007, without returning any benefits back to Malaysians? Subsidies are part of socio-economic measures meant to help the poor. Something is very wrong when subsidies are offered to huge companies to further pad their extra-ordinary profits.