Ongkili: 1MDB takeover of power producers did not raise tariffs

Energy, Green Technology and Water Minister Maximus Ongkili said today the 1Malaysia Development Bhd (1MDB) takeover of three independent power producers (IPPs) five years ago did not raise power tariffs in the country.

In fact, he said, the acquisition resulted in the government saving millions of ringgit in costs.

Responding to Petaling Jaya Utara MP Tony Pua’s statement recently that the minister’s explanation on the matter in Parliament was ridiculous, Ongkili said the DAP national publicity secretary seemed insistent on making evil accusations against the government.

“I distributed the Hansard transcript of my winding-up speech for my ministry in Parliament to the media two days ago in response to the Petaling Jaya Utara MP’s statement when debating Budget 2018 in the Dewan Rakyat.

“I had said the acquisition actually helped in reducing the electricity tariff and I also explained that the IPPs were involved in revising the tariffs to be reduced five years ago before I took over the ministry,” he said.

Ongkili was asked by reporters after a Parti Bersatu Sabah luncheon with the media in Kota Kinabalu today to comment on Pua’s statement following the minister’s winding-up speech claiming Ongkili confirmed that 1MDB had no role in reducing electricity tariffs or costs.

1MDB acquired Powertek Energy Sdn Bhd (formerly Tanjong Energy Holdings Sdn Bhd), Kuala Langat Power Plant (formerly Genting Sanyen) and Jimah Power in 2012.

Ongkili also stressed that the government would only negotiate with IPPs to reduce tariffs every time there was a revision on the matter.

- Bernama