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Outline. Brief HistoryCurrent StructureIssues
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1. Regulation of the Electricity Industry in Malaysia Professor Dr. Cheong May Fong
Faculty of Law, University of Malaya
Asian Competition Forum, Hong Kong
10 December 2007
email: cheongmf@um.edu.my
@cheongmayfong
2. Outline
Brief History
Current Structure
Issues & Challenges
2 Paradigm & Msia’s Direction
Conclusion
General References
3. Brief History 1949:Central Electricity Board (CEB)
1965:National Electricity Board (NEB)
1979:National Energy Policy
1991:Privatization Master Plan
1990:Corporatisation of NEB to Tenaga Nasional Berhad (TNB).
1993:Independent Power Producers (IPPs)
4. Privatization Plan 3 Objectives
Relieve financial and administrative burden of govt;
Improve efficiency & productivity;and
Reduce size & presence of public sector in the economy.
5. National Energy Policy 3 Objectives
Supply: ensure adequate, secure, cost-effective energy supply, both renewable & non-renewable;
Utilization: promote efficient utilization, discourage wasteful non-productive patterns of energy consumption; and
Environment: minimize negative environmental impacts of energy supply chain.
6. Tenaga Nasional Berhad (TNB)
1990: Corporatisation of NEB to TNB
1993: Shares public listed in KLSE
Controls generation, transmission & distribution of electric power
8 subsidiary companies to carry out functions
7. Independent Power Producers (IPPs) 1993: Licenses to Build, Operate and Own (BOO) power plants
First IPP: YTL Power Generation Co.
Currently 21 Power Purchase Agreements (PPAs): Contributes approx 43% total installed generation capacity
8. Current Structure TNB – Peninsular
Sabah Electricity Sdn Bhd (SESB) – took over from Sabah Electricity Board in 1998. TNB now holds shares in SESB
Sarawak Electricity Corp (SESCo)
9. Related Govt Depts Prime Minister’s Dept - Economic Planning Unit: Privatization of electricity supply
Ministry of Energy, Water & Comm: Energy supply industry, energy efficiency, renewable electricity energy
Ministry of Rural Development: Rural electricity
Energy Commission: Regulates energy supply in Malaysia (except Sarawak)
10. Related Legislation Electricity Supply Act 1990, s 4
“The Commission shall carry out such functions & duties … (c) to promote competition in the generation and supply of electricity at reasonable prices;”
Electricity Supply (Successor Company) Act 1990
11. Related Legislation Energy Commission Act 2001, s 14
“The Commission shall have all the functions … (h) to promote and safeguard competition and fair & efficient market conduct or, in the absence of a competitive market, to prevent the misuse of monopoly or market abuse in respect of the generation, production, transmission, distribution and supply of electricity …”
Lembaga Letrik Sabah Act 1983
Perbadanan Pembekalan Letrik Sarawak Act 1983
12. Electricity Coverage