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Thread: Economics: Ani Arope on how TNB got a raw deal from IPPs

   
   
       
  1. #1
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    Economics: Ani Arope on how TNB got a raw deal from IPPs


    Ani Arope on how TNB got a raw deal from IPPs



    In his book published by the Fulbright Alumni Association of Malaysia, former Tenaga Nasional Bhd (TNB) executive chairperson Ani Arope reveals how, after the landmark blackout in Peninsular Malaysia in 1992, TNB was forced to surrender the land it had acquired in Paka (Terengganu) and Pasir Gudang (Johor) to a third party for power plants.

    This started the era of the independent power producers (IPPs) and the first was YTL Power Generation Sdn Bhd.

    This was followed by a slew of other IPPs - Powertek Bhd, Genting Sanyan Power Sdn Bhd, Segeri Energy Ventures Sdn Bhd, Malakoff Bhd, Tanjung plc, EPE Power Sabah Energy Corp, Alpha Intercount'l Bhd, Sutera Bhd, Cergas Unggul Sdn Bhd and Ekran Corp.

    Although Ani, who is Malaysia's first Fulbright scholar, had felt that the power purchase agreements with YTL for a period of 21 years - from 1994 to 2015 - were "too darn generous", he was pressured to ink the deal, which had been drafted by the Economic Planning Unit (EPU).

    Then prime minister Dr Mahathir Mohamad was the man who "engineered" the rise of IPPs.

    "There was no negotiation; absolutely none. Instead of talking directly with the IPPs, TNB was sitting down with the EPU. And we were harassed, humiliated and talked down every time we went there.

    "After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would," Ani reveals in his recently released memoirs.

    Ani, who was under a lot of pressure to sign the agreements, felt the deal was morally wrong and lopsided.

    "If it is legal and not fair, I will not do it. If it is fair and illegal, I still won't do it. It has to be legal and fair," he says.

    Sharp hike in power tariffs

    According to Ani, TNB at that point was producing electricity at 8 sen a unit (kWh) and this could be delivered at 17 sen per unit.

    However, the IPPs were producing electricity at 23 sen per unit, therefore TNB would need to charge consumers no less than 30 sen per unit.

    Now that the first agreement signed will be coming to an end in 2015, Ani said renegotiations should take the need to bring down the capacity charge into consideration.
    "Anything above the 15 percent reserve margin, we will call for bids," he suggests.

    "The second thing is that the IPPs would have, by now, paid up their whole capital investments in their plants and it is all gravy (or profit) from now.

    "Could we not bring this down a bit? Instead of paying a small amount to (a special fund), why not increase the (payment) for future planting up? In that manner, we can control the price of electricity. Otherwise, it's going to escalate."

    The renegotiation, he added, should involve all major stakeholders, including TNB, the IPPs, consumers and the Energy Commission.

    ‘Memoirs of Tan Sri Ani Arope' is a 143-page book that is easy to read and will be available in major bookstores nationwide soon.

    It had a soft launch during Fulbright's 50th anniversary dinner in July this year by its president, Professor Dr Gendeh Balwant.

    Part 1: Race riots could be costly, warns Ani Arope in memoirs

    Part 2: Ultra Malays out to polarise nation, warns Ani Arope

    Tomorrow: Ani Arope on the Allah row

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    py

  2. #2
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    Power blackout whistleblower Ani dies


    [COLOR=#707070 !important]FMT Staff
    | December 20, 2014
    [/COLOR]

    Tenaga man who fell from grace for standing up against govt collusion with power producers.


    KUALA LUMPUR: Power blackout whistleblower Tan Sri Ani Arope, former executive chairman of Tenaga Nasional, died early this morning of prostate cancer. He was 83.


    Family, friends and members of the public can pay their last respects at Balai Islam TNB, Jalan Bangsar from 11am, and his body will be buried at the Shah Alam cemetery after 1pm. Condolences can also be posted on Ani Arope or Sakinah Ani Arope’s Facebook page.

    In his memoirs published last year, the late Tan Sri Ani made explosive disclosures about government collusion in power blackouts that took place in 1992 that led to crony companies becoming independent power producers to Tenaga Nasional at higher rates than Tenaga’s own production.


    Ani wrote that Tenaga could produce power at 8 sen per unit (or kiloWatt-hour), delivered to the consumer at 17 sen a unit. However, independent power producers pegged their rate at 23 sen, which would cause Tenaga to charge consumers at least 30 sen a unit.


    The 143-page book Memoirs of Tan Sri Ani Arope, produced with the help of two members of the Fulbright Alumni Association of Malaysia, was launched in July at the association’s 50th anniversary dinner. Ani was Malaysia’s first Fulbright scholar.


    Ani revealed that he had been pressured into signing a deal surrendering Tenaga land to third parties for power plants. “There was no negotiation; absolutely none. Instead of talking directly with the IPPs, TNB was sitting down with the EPU (Economic Planning Unit of the Prime Minister’s Department). And we were harassed, humiliated and talked down every time we went there. After that, my team was disappointed. The EPU just gave us the terms and asked us to agree. I said no way I would.”


    His opposition to the “way too generous” deals for the power producers would lead to his removal from TNB, which he decribes in his memoirs.


    Ani also dealt with the matter of race relations and the Malay privileges, saying “it appears that these rights have been skewered to benefit the privileged Malays. The rural folk and those who really need help are getting the smallest of crumbs, if at all”.


    “It is convenient to put the blame for this prejudice and bigotry as part of the legacy of the former colonial masters,” he said in a speech to Fulbright scholars. “However, the reality is that much of this prejudice and bigotry are our own making and enforced by interested parties driven by fear-based environment. These parties need to perpetuate the prejudice and bigotry to exist, because these, whether real, perceived or invented, are the reasons that justify the existence of these extreme chauvinistic groups.”


    In his speech, which forms a chapter in his memoirs, Ani called for open discussion of issues. “We may disagree, but we must understand that healthy disagreements would help build better decisions,” he said. ”We must be prepared to discuss our value systems and our priorities. We should not feel embarrassed to talk of the shortcomings amongst us…”
    py

  3. #3
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    Mar 2015
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    “the man who “engineered” the rise of IPPs”
    D same crook also engineered many other things dat enriched selected UmnoB kaki n their cronies, n led 2 d present sad state of affairs in M’sia
    Touch of destruction: what he touched, destroyed/collapsed sooner or later – eg, MAS, delisted n flying lost; Proton, half dead
    Pick up virtue from everyone

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