About time to review IPP pacts, says MCA
By Clara Chooi July 27, 2010(MI)
KUALA LUMPUR, July 27 – MCA today asserted that “it was about time” for the government to review power purchase pacts with Independent Power Producers (IPPs), echoing a view similar to that of the Pakatan Rakyat’s.
Party president Datuk Seri Dr Chua Soi Lek said today that the power pacts compelled Tenaga Nasional Bhd (TNB) to purchase any energy generated by the IPPs, even though it was unnecessary. [Take or Pay Contract]
“In short, they (the government) must look at the compulsory purchase of power from these plants for whatever they generate, the TNB has to buy. The time has also come to review the cost imposed on the TNB,” he said in a press conference after chairing the party’s presidential council meeting here this evening.
Dr Chua said the government needed to manage the country’s finances better and reduce leakages in the system.
He said that while the MCA fully supported the bid to scrap subsidies, it was of the belief that this should be done in stages and with proper consideration given to those in the lower income bracket.
“We approve of the effort to scrap subsidies but the first condition is that it should be done in stages. Perhaps over the next two or three years.
“The subsidy system should be focussed in such a way that it brings benefits to those in the lower income bracket and not to be equal for all,” he said.
In the government’s latest move to reduce subsidies, the prices of RON95 and diesel rates were raised by five sen while subsidies for RON97 were removed completely. The price of natural gas (LPG) rose by 10 sen while the price of sugar increased by 25 sen per kilogramme.
Dr Chua also called on the government to explain to the people how it planned to spend the RM750 million in savings from the recent subsidy reductions.
“How they plan to spend the savings must be told to the people... it must be spent in such a way that it benefits the people. The government should tell the people,” he said.
He said the government should ensure the country’s public transportation system was developed as soon as possible, as a method to justify its bid to remove subsidies.
“Not only in the Klang Valley but also in other areas like in Penang, Johor, Sandakan, Kuching and Ipoh,” he said.
Dr Chua you are the man....
Like many Malaysians, I am not a great fan of the IPPs ever since its inception, I think its too taxing for the rakyat who will ultimately pay for their bill in the form of higher electricity charges. I like many Malaysians would like to see the IPP Gas subsidies taken away first before we the ordinary folks suffer the direct subsidy cuts. The IPP owners have been getting far too fat and rich on the people’s expense for at least 10 years now, enough is enough. This has to stop, the sooner the more votes BN will recover from Pakatan.
It may be the best way to help Malaysia generate additional electricity 10 years ago but the "take or pay" of some of the earlier IPP contracts with the TNB (and therefore us Malaysians) is NOT reasonable and has outlived its usefulness and must be scrapped as it is a ludicrous system that I think will never be implemented anywhere else in the world.
It may be the best way to help Malaysia generate additional electricity 10 years ago but the "take or pay" of some of the earlier IPP contracts with the TNB (and therefore us Malaysians) is NOT reasonable and has outlived its usefulness and must be scrapped as it is a ludicrous system that I think will never be implemented anywhere else in the world.
Dr Chua is being very diplomatic with his words but let us be forthright and tell the Present BN Government to do away with the IPP contracts immediately and let TNB buy over the contract if needed be. I believe TNB could run the IPPs as efficient and charge a lower cost for the electricity it produced. Anything Good for us Malaysians transform to votes for the BN. BN mahu menang Besar Pilihanraya kan?
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