Not Possible For TNB To Cut Tariff Further

June 16, 2009

PORT DICKSON, June 16 (Bernama) -- It is not possible for Tenaga Nasional Bhd (TNB) to reduce the electricity tariff further, said its president/chief executive officer, Datuk Seri Che Khalib Mohamad Noh.

"I also need to stress that whatever TNB collects today, almost 50 percent goes to the independent power producers (IPPs).

"What is there to reduce anymore? If you want us to reduce it, I think you should also ask the IPPs to do it," he said.

He said this to reporters after the ceremony to mark the completion of the second phase of its 750-megawatt Tuanku Jaafar power station rehabilitation project here Tuesday.

Minister of Energy, Green Technology and Water, Datuk Peter Chin Fah Kui, officiated at the ceremony.

He said as far as TNB was concerned, it would ensure that it did not over-charge or burden the customers.

"Considering the problem we have today, our rate is still cheaper compare to Thailand and Singapore," he said.

Che Khalib said industrial users should also play a role by being energy-efficient and undertake energy-saving exercise rather than to continuously ask TNB to lower the tariff.

"There is no way for the country to continue to provide cheap electricity just to make sure that the manufacturing sector can survive.

"I think it is a misleading economic model. The country as a whole must start to look into ways to save energy. If the energy continues to be cheap, people will continue to waste it," he said.

He said Japan was still competitive despite having the highest electricity tariff because they were the leaders in innovation and efficiency.