Kuantan PKR parliamentarian Fuziah Salleh has blasted the government for what she alleged as wasting RM8 billion of public funds by paying independent power producers (IPPs) for unnecessary access of backup energy.
“IPPs receiving payment from the government for producing back-up energy at a 40 percent rate are making access profits when 20 percent is enough,” she told reporters outside the Dewan Rakyat today.
Fauziah is also unhappy that the government has been lagging in responding appropriately to the issue.
Earlier in the Dewan Rakyat, Deputy Energy, Water and Communication Minister Joseph Salang revealed that Tenaga Nasional Berhad had paid 13 IPPs some RM43 billion for energy including the reserves from 2004 up to May this year.
Salang said he was not informed of any agreement in the power purchasing agreement (PPA) that IPPs are instructed by the government to produce 40 percent of reserve energy.
However, he admitted that there are excesses pertaining to the percentage of reserve energy the country has but denied that this was caused by the agreement.
“We hope that we can reduce this access when there is an increase in demand for the use of energy and this will happen if we see our economy develop vibrantly and hope we can reduce the access to 20-25 percent,” Salang told the House.
According to Fuziah, out of the total amount, RM13 billion were spent on the 40 percent reserve energy and should the government ask the IPPs to produce only the 20 percent required, RM8 billion could have been saved.
She also described the response from the ministry as “disappointing”.
“Salang’s admission that there was access in standby capacity but refused to claim responsibility by giving excuses like it was not in the PPA is utterly irresponsible,” she said.
“The people are currently bearing the burden of high power tariff and the government should not let the people bear (the access cost of the reserve energy) through the tariff,” the MP stressed.
Put a leash on the IPPs
Fuziah also said it was shocking to hear the deputy minister saying that the government would “scheme up ways to use the access of energy” instead of resolving the matter responsibly by reducing the tariff or saving it.
Other Pakatan Rakyat MPs present at the press conference, R Sivarasa (PKR-Subang) and Dr D Jeyakumaraj (PSM-Sungai Siput) also slammed the shabby response given by Salang.
“Salang said that the government is waiting for ways to use up the access reserve energy but the people are still paying a lot for electricity due to the high tariff,” said Sivarasa.
The MPs urged the government to review the PPAs with the IPPs.
“I urge them to be more responsible in the matter and stop burdening the people. Enforce an assessment on these IPPs that have been acting without any accountability and stop paying for the excesses of energy,” Fauziah added, on behalf of her colleagues.
source: malaysiakini
PEOPLE'S POWER
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