In a break from its usual pro-government stance, the Malay Consultative Council (MCC) today demanded Putrajaya to do away with independent power producers (IPPs).
This comes as YTL Power International Bhd withdrew from the latest RM3 billion power plant in Johor dubbed 'Project 4A' that was awarded directly to a consortium involving the company as well as a firm by the Johor sultan and Tenaga Nasional Berhad (TNB).
MCC secretary-general said Hasan Mad said the government should instead return to the old days where TNB is solely responsible for power generation.
"Since YTL has withdrawn, there is no more controversy and the government should take the opportunity to grant the project to TNB alone," Hasan Mad told a press conference in Kuala Lumpur today.
He added this should apply to all future power production projects.
MCC boasts to be an umbrella group representing over 400 Malay NGOs.
YTL had come under intense pressure, particularly over how it received the project directly from the government without open tender.
'Let existing IPPs expire'
However, Hasan said the existing IPPs that the government had already entered into an agreement with should be allowed to continue until their contracts expire.
YTL had come under intense pressure, particularly over how it received the project directly from the government without open tender.
Hasan said TNB has proven it has the experience and capability to handle mega scale power generation projects and should rightfully receive them.
"TNB has been recognised overseas and tasked with the construction of power plants in a number of countries. If they can do it in other countries, why not in our own country?" he said.
He added that utilities were a security issue and should not be privatised.
'Bumi vendors can benefit'
Hasan also lamented the lack of opportunities for bumiputera vendors when IPPs were granted to non-bumiputera players such as YTL.
"If TNB is given the responsibility to handle power generation, surely many business opportunities can be created for vendors particularly among bumiputeras," he said.
The IPPs were introduced after a nationwide blackout in 1992 which then prime minister Dr Mahathir Mohammad blamed on TNB.
Former TNB executive chairperson Ani Arope (left) had described the IPP agreements as "morally wrong".
In his memoir, he pointed out TNB could at that time generate electricity at eight sen a unit (kWh) and this could be delivered at 17 sen per unit but IPPs were producing electricity at 23 sen per unit.
According to the agreement, regardless of TNB's needs, it must purchase all the electricity generated by the IPPs.
Therefore, TNB would need to charge consumers no less than 30 sen per unit even though it could produce and deliver them at a significantly cheaper price on is own.
This comes as YTL Power International Bhd withdrew from the latest RM3 billion power plant in Johor dubbed 'Project 4A' that was awarded directly to a consortium involving the company as well as a firm by the Johor sultan and Tenaga Nasional Berhad (TNB).
MCC secretary-general said Hasan Mad said the government should instead return to the old days where TNB is solely responsible for power generation.
"Since YTL has withdrawn, there is no more controversy and the government should take the opportunity to grant the project to TNB alone," Hasan Mad told a press conference in Kuala Lumpur today.
He added this should apply to all future power production projects.
MCC boasts to be an umbrella group representing over 400 Malay NGOs.
YTL had come under intense pressure, particularly over how it received the project directly from the government without open tender.
'Let existing IPPs expire'
However, Hasan said the existing IPPs that the government had already entered into an agreement with should be allowed to continue until their contracts expire.
YTL had come under intense pressure, particularly over how it received the project directly from the government without open tender.
Hasan said TNB has proven it has the experience and capability to handle mega scale power generation projects and should rightfully receive them.
"TNB has been recognised overseas and tasked with the construction of power plants in a number of countries. If they can do it in other countries, why not in our own country?" he said.
He added that utilities were a security issue and should not be privatised.
'Bumi vendors can benefit'
Hasan also lamented the lack of opportunities for bumiputera vendors when IPPs were granted to non-bumiputera players such as YTL.
"If TNB is given the responsibility to handle power generation, surely many business opportunities can be created for vendors particularly among bumiputeras," he said.
The IPPs were introduced after a nationwide blackout in 1992 which then prime minister Dr Mahathir Mohammad blamed on TNB.Former TNB executive chairperson Ani Arope (left) had described the IPP agreements as "morally wrong".
In his memoir, he pointed out TNB could at that time generate electricity at eight sen a unit (kWh) and this could be delivered at 17 sen per unit but IPPs were producing electricity at 23 sen per unit.
According to the agreement, regardless of TNB's needs, it must purchase all the electricity generated by the IPPs.
Therefore, TNB would need to charge consumers no less than 30 sen per unit even though it could produce and deliver them at a significantly cheaper price on is own.
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