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Press Statement

by Lim Guan Eng

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(Petaling Jaya, Wednesday): DAP demands that Datuk Dr Lim Keng Yaik direct TNB to pay compensation to consumers who suffered losses from the 90-minute power blackout in Penang yesterday or retire early as Minister for Water, Energy and Communications. Failure to compensate Penangnites would be a betrayal of their trust and support for Gerakan and BN in the last general elections where the interest of one company is more important than Malaysians.

TNB must be severely punished to ensure that there is no repeat of yesterday’s shameful power blackout in Penang. The blackout in Penang that affected almost half of the island in Georgetown, Farlim, Sungai Pinang, Bayan Lepas, Bayan Baru and Balik Pulau.is shameful because there is no excuse any more for such power disruptions.

TNB has one of the highest reserve margin in the world of 40% (when the international benchmark is 15-20&) by paying for energy TNB does not need. And yet this reserve margin that is so costly to maintain does not insure us against power blackouts. TNB had claimed that increased capital expenditure to improve the distribution network required a new power tariff hike. And yet before a new power tariff hike is decided, TNB has recorded a 88% rise in net profits this financial year ending 31.8.2007 to a record RM 4.06 billion against RM 2.16 billion previously.

TNB was still able to achieve record profits despite the record fuel prices unlike ordinary Malaysians who are unable to make ends meet. Moreover, TNB continued to enjoy gas subsidies from Petronas. Petronas' cumulative subsidy since 1997 amounted to RM 58.2 billion, of which RM 48.8 billion was to the power sector and RM 9.4 billion to the non-power sector. 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.

Either TNB is not spending capital expenditure to improve the distribution network or the money spent is not utilized efficiently. The best method to ensure good delivery is to punish TNB for poor delivery. If Keng Yaik fails to deliver this important lesson to TNB, then it is TNB that is in power, not him and Keng Yaik might as well retire early as Minister.