TNB losses: CEO Khalib told to bare all

Tenaga Nasional president and chief executive officer Che Khalib Mohamad Nor (pic) must come clean over the sole national power company's RM453.9 million losses incurred in the fourth quarter of its financial year ending Aug 31.

Khalib had earlier blamed the losses on a shortage of gas supply from national petroleum corporation Petronas, resulting in an additional fuel cost of RM2.1bil from oil and distillate.

TNB's profit has also plunged to RM499.5mil from RM3.2bil in 2010.

“TNB has to burn an additional 1.1 tonnes of coal amounting to RM400mil to supplement the lower gas volume,” said Khalib.

It was also reported that the independent power producer (IPP) energy payment and fuel costs had landed TNB with a bill amounting RM3.2 billion for the second half of the 2011 financial year, 50.5 percent higher from the first half.

“If insufficient natural gas supply and usage of expensive alternative supplies was the reason for TNB’s losses, then how come IPPs can continue to record profits?

"Is it because TNB, unlike the IPPs, cannot enjoy enough natural gas supply from Petronas?” asked Pokok Sena member of parliament Mahfuz Omar.

Saying TNB has been forced to buy power from the IPPs even if it did not need to, Mahfuz said TNB could have been victim of a policy to benefit the private power producers.

Mahfuz took Khalib to task, saying the latter had not the same courage as his predecessor Ani Arope, who resigned in protest of the lopsided deal with IPPs during his tenure.

“But at least, Che Khalib must come forward because TNB might have suffered more losses if it did not raise the tariffs in the middle of the year by an average of 7.12 percent,” said Mahfuz.

- Harakahdaily