Open Bidding In The Interest Of Consumers/Rakyat, Says TNB
Keep prices at reasonable levels
Encourage healthy competition
Big game changer for the country
Tenaga Nasional Berhad (TNB)‘s participation in future power plants bidding process ensure successful bidders made reasonable market returns and customers benefit from competitive electricity prices, said TNB Vice President (New Business and Major Projects), Dato’ Ir. Mohd Nazri bin Shahruddin.
Responding to recent statements in the press by some quarters who opposed TNB’s involvement in the bidding process, he said bidding is crucial to the electricity sector as it keeps prices at reasonable levels and encourage healthy competition.
“Calls for TNB to be exempted from the bidding process would be counter productive to the fundamental objective of bringing value to the customers via most competitive electricity price.”
“It is in this spirit that TNB entered into the bidding process,” he said.
Denying allegation that as the sole offtaker, TNB has an unfair advantage against other bidders, Nazri said: “This is not true as selection is based on the best offer; Lowest Levellised Tariff.”
He added that TNB is subjected to the same conditions as the others. “We bid in the same terms and would definitely not take negative or zero returns.”
Nazri explained that all bids offered by TNB are based on project finance where its financiers expect reasonable market returns for their investments.
To win bids, participants must ensure returns are not excessive and assure that customers are not unduly burdened by high electricity prices.
Applauding the Energy Commission (EC) for its efficient and transparent implementation of the mandate given by the Government, he said: “We recognise that this bidding process is a big game changer for the country.”
“We have played fair and followed the rules of the game and this process is a big shift from the past where IPPs were awarded direct contracts.”
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