Thursday, September 26, 2013

The Sabah Blackout: Why national security should not be left to the IPPs

Updated: Blackout came barely a week after Ministry set up a special task force to monitor power supply projects in Sabah. The Minister, Maximus Ongkili, said his ministry was concerned with the situation in the state ...h e r e.


Original posting:

Electricity supply crippled in Sabah
   
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KOTA KINABALU: A series of incidents at three major power stations in Sabah crippled electricity supply in the state, reducing generation capacity by nearly 200MW.
Sabah Electricity Sdn Bhd managing director Abdul Razak Sallim said the energy company had to impose load-shedding affecting some 500,000 consumers for up to a month because of the power shortfall.
He said the first incident occurred when the Teluk Salut station at Sepanggar, operated by Ranhill, crippled a turbine at about 8am, causing a power loss of 47.5MW.
Abdul Razak said a breakdown at the Rugading power station, operated by Ranhill Powertron, at about noon, and a fire 38 minutes later at the Malawa station, operated by ARL Power, caused the supply shortfall to increase to 200MW.
“Power supply from these stations is being restored in stages,” he said.
Abdul Razak added that the load-shedding was necessary as the available electricity now amounted to just over 700MW.
“Demand in the state has topped at 874MW,” he added.
Abdul Razak said the load-shedding would affect the whole state with different areas experiencing power supply interruptions for about three hours each between 6am and 9pm.
He said industrial and business users that had their own back-up power generation sets would be asked to operate their equipment to help ease the electricity supply shortfall. - The Star

ONE CRUCIAL POINT was left out by the Star in this article, which was caught by the NST: the three IPPs implicated in the current blackout are not under SESB jurisdiction (500,000 in Sabah face power cut). 

Both NST and the Star missed a basic fact: 70 per cent of Sabah's power are supplied by IPPs.

And these, to me, should be of concern to every one of us. Especially in view of some disconcerting developments, like wild talk about the unbundling of TNB and attempts to exclude TNB from future tenders in order to protect the profits of the IPPs. 

The message must be sent to the people at Penjanabebas, which represent the IPPs, and Mypower ( I don't know whose interests this government agency really champions) that national security is too important to be left to the IPPs in their political, regulatory or economic games ...
  

19 comments:

Apanama said...

IPP contracts should not be renewed. PERIOD! We don't owe the tycoons a living.

IT.Sheiss said...

It is high time this privatisation thing is reversed and all power generation returned to the state-owned entity.

Privatisation began around the time Mahathir met Margaret Thatcher who came to Malaysia to settle the Buy British lat row and it has not benefited the people and must be reversed.

Anonymous said...

Better for to check again on Mypower stands on this issue. Clearly they are supporting that tnb to be included in any new bidding of power plant. They even had responded to one sided comments by Penjababebas.

Jln Reko

Anonymous said...

I don't know what is the relation between privatisation with IPP. They actually are different entity. TNB/SESB is GLC while IPP is mostly owned by datuk2 via shareholders.

Even if the TNB/SESB already privatised, they actually can/capable managed any power generation sector IF ONLY no interception by the interested parties!

Anonymous said...

Sabah blackout in Sabah is normal. we face it almost everyday. Sad.

Anonymous said...

You are missing the point, Bru.

Other countries have privatised the generation and distribution of electricity, without any concerns being voiced about impacts on their national security.

Cases in point: the UK, Australia, the US, Canada and Singapore.

Can you think of a country that is more security-conscious than Singapore?

Yet it has privatised the generation of electricity to 3 major players, one of which is our very own YTL!

It's all about whether the regulator has a robust surveillance mechanism in place, and whether the policies thereunder are properly followed by the IPPs.

Why don't you broaden the subject to include the diversification of our energy sources - coal, natural gas, fuel oil, hydro and solar?

I would think that a major concern would be the security of Petronas's LNG and piped natural gas intakes and distribution networks in the peninsula and East Malaysia.

What will happen if our gas supplies are disrupted, for instance, through a terrorist or unforeseen incident?

Anonymous said...

Can you convince the rakyat, especially Selangor, why Langat II will not experience such lapses in the supply of essential service to the public?

PARAMESWARA

Anonymous said...

Free enterprse sld b encouraged but control must b in placed. Non performer thrown out & new player b allowed in then everyone wins.

Anonymous said...

For all the boastful talk about the greatness of mamak Mahathir, he failed in almost in everything he does or did;

1. IPP failed
2. Proton failed
3. KLIA failed to notch in top 5
4. NEP
5. Perwaja Steel
6. Bank Bumiputra
7. Universities world ranking
8. etc


It's sad that there are minority Malays who are still hanging to him like leeches.

Power Subsidy Distorting Industries said...

Professor Mak in a recent NST article had exposed that IPPs have profit up to 10 billion a year. Idris Jala that Christian Dayak/iban whatever, himself could not understand that beside the 30 billion of Petronas subsidies for the power consumers, the IPP were guaranteed profits. In the NST article the learned Professor suggested EPF or PNB taking over the IPP because of the huge profit can be shared to many citizens instead of just to a China man like Francis YTL and Mahathir sons.
On the yearly 30 billion subsidy exposed by the NST article, 90% goes to chinese own industry. Again another example of anti competitive subsidies distorting malaysians industries. The kampung folk using gasoline never tasted any of these billions of subisidies. That is injustice.
To recap, if one IPP can get 10 billion profit, then the total amount of profits for these rent seekers are probably 50 billions. Where do the profits come from if they are not from subsidies. TNB pays the IPP GUARANTEED profit and TNB get its income from you and me!
But you and me only pay part of TNB price the balance from Petronas, that means what TNB pays the IPPs include the subsidies from Petronas.
Mahathir sold all the GMalay/UMNO overnment assets to Chinese like YTL,chinese gamblers tokay Genting, Indian like Ananda and of course his own son have shares with YTL. If that is not corruption MACC should close shop.

IT.Scheiss said...

To those who still cling to the failed ideology of neo-liberalism, privatisation and deregulation, watch this video about the testimony of the President of Iceland, who has more balls than leaders of Anglo-Saxon countries.

http://www.youtube.com/watch?v=qieVZb4Ml9I

somebody from the industry said...

IPPs are bounded by purchase agreements.the longer your machine is problematic, the lesser the payment you will get.in fact in some agreements, you will have to pay to tnb instead as a penalty...who says its a one sided agreement..get your facts right please..

Anonymous said...

Anybody seen this?

http://ikhwanhafiz.blogspot.ae/2013/09/kecoh-najib-razak-meeting-dengan-mark.html?m=1

Anonymous said...

Wong Chun Wai of the STAR say;

And let us not also forget the `indigenous' people of the peninsula, Sabah and Sarawak who served in the security forces and were renowned for their jungle tracking skills. They too suffered many casualties.

indigenous mean the Malay, Iban, Kadazan etc. RIGHT?

or are you musuh dalam selimut? or Helen Ang famously say Gunting dalam lipatan?

WAKE UP NAJIB!!!!

Bru said...

Anonymous Anonymous said...
For all the boastful talk about the greatness of mamak Mahathir, he failed in almost in everything he does or did;

1. IPP failed
2. Proton failed
3. KLIA failed to notch in top 5
4. NEP
5. Perwaja Steel
6. Bank Bumiputra
7. Universities world ranking
8. etc


It's sad that there are minority Malays who are still hanging to him like leeches.

3:55 pm Delete

xxxxxx

Anon,

All those projects you mentioned plus etc -- they did not fail. In fact, Proton, the Twin Towers, Putrajaya, the LRT you take to KLCC, the modern life-saving highways, the many, may varsities we have, and more etc --- they in fact DEFINE what Malaysia is today.

Millions of Malaysians can afford cars today because of the national car project. Proton was and still is a huge success. It brought billions in ringgit in returns.

Our failure is to build on the foundations of success laid by Dr Mahathir. Much of it was because of Abdullah Badawi, Mahathir's biggest mistake ...

Anonymous said...

That's why we all say that Bru is nothing more than a brown-nosed asslicker for Mamakthir.

The highways were all overpriced, the IPPs were overpriced and continued to rape the country, the LRTs all failed, and had to be bailed out by the gomen, and Putrajaya is nothing more than Mamakthir's wet dream. Proton ? The less said about it the better, the rakyat knows what a failure this is, and now that it was given to a Mamakthir crony, who dares pull the plug on this substandard company ?

Zheng Ho Abdullah

20% wealth for Chinese said...

Bro, the KLCC, Proton etc all enriched his chinese and ananda cronies. They define the inequality of malaysia today. Yes indeed that is the definition of Malaysia that we want to erase.
20% for the Chinese 10% for the Indians 70% for Malays and bumis.
The Malays must grab the opportunity now that Malaya is independent and power is in our hand.
Grab this golden opportunity in this land of the Malays.

20%wealth for chinese said...

Bro, the KLCC, Proton etc all enriched his chinese and ananda cronies. They define the inequality of malaysia today. Yes indeed that is the definition of Malaysia that we want to erase.
20% for the Chinese 10% for the Indians 70% for Malays and bumis.
The Malays must grab the opportunity now that Malaya is independent and power is in our hand.
Grab this golden opportunity in this land of the Malays.

Anonymous said...

Datuk:

"Millions of Malaysians can afford cars today because of the national car project.

Proton was and still is a huge success. It brought billions in ringgit in returns."

First part (to be fair), true. Second part...well, arguable. You have to look at its performance vs how many years it's been operational. Not that many countries in the world have their own home-grown car industry. Plus Proton's not that old compared to the world leaders in auto-making.

Having said that, they had the advantage of bountiful tech transfer from Mitsubishi, Lotus etc. plus a lot of financial support.

Overall, it's underperforming.