News Coverage

Date: 
07-12-2015
1MDB: Any power tariff hike has no links to Edra sale
1MDB: Any power tariff hike has no links to Edra sale
Source: 
The Star
Category: 

KUALA LUMPUR – Any increase in electricity tariff has no links with the sale of 1Malaysia Development Berhad’s (1MDB) entire power assets under Edra Global Energy Bhd to China Nuclear Power Corporation (CGN).

1MDB president and chief executive officer Arul Kanda Kandasamy said it should not be an issue as the new owner must adhere to the existing power purchase agreements (PPA).

“All the tariffs under the PPA cannot be simply changed.

“It should not be a factor on whether there will be electricity tariff increase or otherwise, as it is already fixed.

The ownership of the power assets has no control or link to the current tariff structure,” he said in his remarks at the special briefing session for young people in conjunction with the Umno general assembly here yesterday.

At the event, 1MDB also launched the latest explanation booklet called Who says 1MDB Does Not Answer to explain the allegations levelled against the debt-ridden company.

He said since the 1990s, power production had been privatised to various independent power producers, thus the sale of Edra Global Energy Bhd’s energy assets should not be politicised.

In the booklet, 1MDB said that it was inaccurate to assume that the country would lose out after selling the energy assets under Edra Global Energy Bhd.

“After the agreement, the debt reduction of 1MDB could reach up to RM17bil without taking into consideration some RM2bil dividends that the company had received in terms of energy assets previously.

“The sale of Edra’s power assets will create a positive impact on our country, including a huge inflow of foreign direct investments and the reduction of debts after the proposed take over from the foreign country,” it said.