Kuala Lumpur High Court Application for Judicial Review
Tenaga Nasional Berhad (“TNB”) wishes to announce that it has applied for leave to commence judicial review proceedings against the Suruhanjaya Tenaga (“ST”) and Minister of Energy, Green Technology and Water (“Minister”) on 4 July 2016 at the High Court of Malaya, Kuala Lumpur.
The application is in relation to a direction dated 7 April 2016 issued by ST to TNB which compels TNB, among others, to remove the incorporation of conditions precedent required by TNB in the proposed new power purchase agreement that is the subject of negotiations between TNB and YTL Power Generation Sdn. Bhd. (“Direction”). The Direction was made pursuant to the Minister’s direction to ST on 1 April 2016 (“Minister’s Direction”).
Under Section 50E of the Electricity Supply Act 1990 (as amended) (“Act”), failure by TNB to comply with the Direction is an offence, and shall, on conviction, be liable to a fine of not more than RM200,000.00 or imprisonment of not more than two (2) years or both.
TNB seeks the following relief, among others, in the judicial review proceedings:
- an order of Certiorari to quash the Direction;
- an order of Certiorari to quash the Minister’s Direction;
- a declaration that the Direction is ultra vires the Act read with Energy Commission Act 2001;
- a declaration that the Minister’s Direction is ultra vires the Act read with Energy Commission Act 2001; and
- that consequent to the grant of leave, that the Direction be stayed pending the hearing and determination of the judicial review proceedings on its merits.
- Aside from the legal and management costs, the judicial review proceedings will not have any material financial and operational impacts on TNB.
TNB will make further announcements accordingly as and when there is any material development to the judicial review proceedings.