KOTA KINABALU: The purchase of three independent power producers (IPPs) by 1Malaysian Development Berhad (1MDB) has helped saved RM1.6 billion for the country, said Energy, Green Technology and Water (KeTHHA) Minister Datuk Seri Dr Maximus Ongkili.
He was responding to DAP’s Petaling Jaya Utara MP Tony Pua’s allegations during a recent parliament sitting that the purchase of the three entities had not benefited the people in terms of electricity tariff.
During the Dewan Rakyat, Ongkili had said that as part of 1MDB’s acquisition of Tanjong Energy Holdings Sdn Bhd, Kuala Langat Power Plant and Jimah Power in 2012, the tariff rate had been maintained as finalised in the power purchase agreements (PPA).
Ongkili, who is also Parti Bersatu Sabah acting president, was speaking during the party’s luncheon with media here.
He also added the lower capacity rate financial (CRF) of RM6kw per month for 48 months has resulted in RM1.6 billion in savings as per the condition in the tender set by the Energy Commission.
“Five years ago, before I become the KeTHHA minister, there had been discussions by the government to reduce the tariff.
“The tariff cannot be increased as they are tied to the 21-year PPA,” he said, adding the tariff can only be reviewed downward.