Malaysia to raise Electricity Tariff by 10% - 20% in 2014

This is what was announced in a very general manner by the Minister, to which it would normally be construed as tariff hike by TNB alone. But I have reason to believe that Sabah Electricity Sdn Bhd (SESB) will also be affected the same way.

Don't ask me why and how I came to such conjecture, but let's just speculate that if it happen, it will most likely be by similar quantum to the one in July 2011, which is 15%. Do you feel your business is hurt already?

But...if you think about the bigger picture, electricity tariff revision is actually inevitable as we move forward towards industry competitiveness, and that can be achieved by reducing subsidies, but let's do it in gradual manner and not making this a yearly affair.


"Anything below 20% is reasonable." - Datuk Dr. Maximus Ongkili


Electricity tariffs to go up next year
(The Star, November 28, 2013)

Consumers should brace themselves for a 10%-20% hike in electricity tariffs next year.

“The quantum (of increase) is not finalised … but anything below 20% is reasonable,” said Energy, Green Technology and Water Minister Datuk Seri Dr Maximus Ongkili.

The final decision on the increase has yet to be made by the Cabinet, but the hike could happen anytime in 2014, he told reporters on the sidelines of a Parliament session yesterday.

The move, he said, would be in line with the Government’s plan to gradually cut subsidies.

It would also be in line with its efforts to boost efficiency and competitiveness in the Malaysian power industry, as well as to ensure sufficient returns to capital for utility company Tenaga Nasional Bhd to cover its costs.

A tariff hike will see rates for both industrial and households increase, but any hike for businesses will be mitigated against the need for them to remain competitive. A home appliance that is rated at 1,000 watts, if left switched on for one hour, would use 1 kilowatt-hour (kWh) of electricity.

A 10%-20% hike would translate into an increase of 3.35 sen/6.7 sen per kWh to 36.85 sen/40.2 sen per kWh. This is based on the prevailing tariff rate of 33.5 sen per kWh, which is about 8.5 sen below the “true cost” of power at 42 sen per kWh.

In comparison, electricity tariffs in the Philippines and Thailand are 58 sen per kWh and 48 sen per kWh respectively.

Ongkili said the Government would implement a “stabilisation” programme to protect consumers, especially the low-income group, when the tariff hike takes effect. Details of the programme have yet to be finalised.

The electricity tariff was last revised in June 2011 after the Government raised the subsidised gas price for the power sector to RM13.70 per million metric British thermal unit (mmbtu) from RM10.70 per mmbtu.

Gas accounts for about 50% of electricity generation in peninsular Malaysia. Coal accounts for 40%, hydropower about 8% and renewable sources around 2%.

Subsidies for the power sector are RM8bil to RM12bil per year, depending on the prevailing price of gas. The Government’s share is RM150mil and the rest is borne by Malaysian oil and gas company Petroliam Nasional Bhd.


TheGreenMechanics: They say it's done in the name of efficiency & competitiveness. Let's see if we can achieve this.

TNB to build two 1,000MW coal-fired power plants in Perak

It is good that TNB is taking proactive measures to mitigate the risk of inability to supply sufficient power to Peninsula Malaysia. The catchy keyword is coal, and because it is coal, it is sensitive.

Setting up of coal-fired power plant is controversial (we have such experience in Sabah) because the potential for environmental pollution is very high. The proposed 300 MW coal-fired power plant in Lahad Datu was scrapped due to the people's objection.

Extension to the existing power plant in Manjung will start soon. Photo: Lowyat

Contrary to this, n West Malaysia, though, coal-fired power plant is one of the bigger contributors to the energy generation mix. There are also coal-fired power plants in Sarawak.

So, the real question here in Sabah is, are we looking more towards solution of the perennial issue of blackout/power failure or are we more looking at the environment alone? Of course there is a balance to be struck, but you cannot have the best of both.

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Two new 1,000MW power plants in Manjung

Tenaga Nasional Bhd (TNB) will build two high-technology 1,000 MW coal-fired power plants in Manjung, Perak to meet the increasing demand for electricity.

Its vice president of generation Zainuddin Ibrahim said the two projects will start soon and will be completed within the next four years. The power consumption is expected to increase by 5% annually and the two projects are in the company's pipeline.

"The two projects in Manjung are mainly for domestic usage and are expected to be completed in 2017," he told reporters after launching the 3rd Annual Asian Sub-Bituminous Coal User Group Conference which was attended by over 140 industry professionals from 15 countries including Malaysia, the United States, United Kingdom, South Korea, Thailand, Indonesia and Russia on October 1, 2013.

On average, Malaysia consumes about 15,000 to 16,000 MW of power daily, with the figure expected to increase annually. TNB's power generation ratio is as follows:-

• Natural gas                    : 50%
• Coal-fired power plants   : 35% to 40%
• Renewable energy         : 10% to 15%

TNB believes that coal is one of Malaysia's most important sources of energy, and over 80% of coal in Malaysia is imported from Indonesia, South Africa and Australia.

The utility's annual consumption of coal is about 42 million tonnes and the trend continues to increase, with Asia being the biggest market for coal for power plants, accounting for 67% of worldwide demand.


Source: Bernama

Compensation to consumer due to power utility company's fault

I was combing for information in the Electricity Supply Act 1990 to see if there is a clause to give consumers the rights to claim from the utility companies - TNB, SESB, SEB - for electrical appliances and equipment damages due to voltage surges and dips in the power supply system.

I am currently working on a claim against SESB for faulty equipment due to over voltage at their 415V LV supply system with no favourable result so far. I could not find the pertinent clause, but would appreciate it very much if anyone can point me to it.


Go ahead, make the claim

Can you actually claim for damaged equipment, and in what circumstances can you possibly win a case against these power utilities? Well, based on the following cases, you may have a chance:


Case #1: In 2011, Sarawak Energy Berhad paid RM1,695.40 in compensation to two consumers




Case #2: In 2012, Sabah Electricity Sdn Bhd promised to investigate and consider compensation


The best option, as it seem, is to go to the Consumer Claims Tribunal and provide to them as much details as possible, but most importantly the followings:

• Claimant's detailed information,
• Police Report,
• List of damaged equipment,
• Original receipt of equipment repair, etc

In the SEB case, the consumers have written earlier to the power utility company but their complaints went unanswered and that was when they decided to approach Consumer Claims Tribunal Malaysia.

So there. Know your rights and play your role, and plug some holes in your pocket.

TheGreenMechanics: The Acts pertaining to electricity supply seem to be not so friendly when it come helping the consumers. Aren't consumers the backbone for the existence of the power utility companies?

Someone can point me to a clause in the act that can save my day, please?

Hari Raya: Electrical safety tips by TNB

Tenaga Nasional Berhad (TNB) yesterday advised the public to take safety precautions while using electrical appliances during the Aidilfitri season.

Image credit: redbeacon.com

Tenaga Nasional Berhad outlined some basic safety measures that could be adopted by you and me in order to prevent any mishap:-

• Avoid making wiring extensions on your own.


• Obtain the services of electrical contractors registered with the Energy Commission for installation of additional wiring in your premises and to notify the TNB.


• Do not to use too many electrical adaptors to avoid the wire getting heated up.


• Avoid wearing metal ornaments such as watches, chains or rings when installing electrical gadgets.


• Keep the extension wire away from wet areas in the case of electrical gadgets installed outside the house,


• Ensure that the Earth Leakage Circuit Breaker (ELCB) sockets, plugs and other electrical appliances were functioning.


• Switch off and remove plugs from the power source when they are not in use or before leaving the house.

The public were told not to go near TNB restricted areas.

Consumers can contact TNB for feedback:

1. Call, by phone or text to 15454 - for power outages and faulty street lights
2. Call 1300-88-5454 - for inquiries on electric bills and related matters. For SESB, SMS to 33154, and the toll-free line is 1-800-88-1355
3. e-mail to tnbcareline@tnb.com.my or visit www.facebook.com.my/tnbcareline.
4. SESB can be reached at this e-mail: crm@sesb.com.my

TheGreenMechanics: This does seem like the usual safety measures we're being fed every now and then, but you've got to take this seriously. You don't want your iron left on the ironing board, switched on during the long weekend.

Source: Bernama

Kubota Power Station starts operations in Jan 2013

Really?

Exactly 1 month ago SESB said in a statement that the 64MW power plant in Kubota, Tawau will start operations.

A gentle reminder, if you care. (DE, 7-12-12)

If you recall, this plant was supposed to have started operations in June 2012. But due to the  hijacking of the vessel ferrying the plant equipment intended for this power station, it is understandable. Hopefully they are true to their words this time and starts operating it this month.The hijacking incident is not totally beyond control as TNB has the technology and money to ensure safety of its vessel.

We are currently facing the possibility of load shedding and power rationing due to the failure of one of IPP's generators in Sepanggar causing capacity shortage of 95MW.

We can't afford further delay. BTW, the turbines are understood to be 16 years old, so, I believe this is only for temporary measure by SESB/TNB.

__________________________________________________________________________

Kubota station starts ops Jan
DE - Dec 7, 2012

Tawau: The Kubota power station will start producing electricity from Jan.7, next year, and its 64MW capacity is expected to increase supply in the east coast. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui, who visited the project site, was satisfied with the progress of the RM80 million project.

"The east coast of Sabah has been facing inadequate electricity supply, and the Kubota power station is badly needed to offset the situation," he said.

Asst Infrastructure Minister Datuk Pang Yuk Ming, who accompanied Chin, said the gas-fired turbine generator would increase Tawau's power generating capacity to 128MW to meet the peak demand of 90MW at present, and would help reduce power outages in the district.

Sabah Electricity Sdn Bhd Managing Director Abd Razak Sallim was present. Launching of the station was behind schedule due to the hijack of the turbines, recently, which had caused a set-back when they ended up in the Philippines.

TNB set to get 1320 MW coal powered plant job in Bangladesh

Tenaga Nasional Berhad (TNB) may have shelved its plan to build a 300 MW coal-fired power plant in Lahad Datu, Sabah, but that does not stop the utility company to keep burning coal elsewhere.

TNB's proposal for installation and operations of a 1,320MW plant has been selected by Bangladesh Power Division. TNB beat other proposals from China and Thailand power generation companies.


TNB's other coal-fired power plant in Manjung, Malaysia. Picture: Instrumentations & Process Control


Bangladesh's New Age newspaper reported that the power plant, to be installed at either Anwara in Chittagong or Maheshkhali at Cox's Bazar, would be through a joint-venture company owned by the Power Development Board and TNB.


Quick facts and estimates

Plant capacity    : 1,320 MW
Fuel                    : imported coal
Owner                : Bangladesh Power Division
Cost                   : RM6.6 billion (US$2.15 bil) - The EDGE Malaysia's estimate
Project scheme  : Build-Own-Operate
Proposed J-V     : 50-50 share between TNB and the power board


Nothing official yet but it is expected that a delegation from the Power Division will visit Malaysia this month to finalise the memorandum of understanding on the installation and operations of the plant.


Bangladesh has more coal-fired power plants

Including this proposal, Bangladesh has so far initiated 3 big coal-fired power projects, each having 1,320MW power generation capacity, in joint venture with equal shares with three state-run agencies.

Being the biggest power utility company in Malaysia, TNB certainly has the experience and capability to install and operate similar plants. At present, TNB's combined generation capacity (in Malaysia and Pakistan) is 12,000 MW.

Bangladesh has set a long-range target to generate about 20,000MW power from coal-fired plants - 11,250 MW using domestic coal and 8,750 MW fromimported coal - by 2030.


TheGreenMechanics' two cents:

Coal advocateurs claim that there is newer technology that make coal 'clean' and thus it should be developed further to become the main fuel. Coal can never be clean from whichever perspective you look at it and a 'dirty' fuel shall remain dirty. Question is how well can you manage the waste and byproducts of burning coal. There is bound to be leaks somewhere. The ill effect of the pollution is not immediate (unlike other chemicals), and thus people's mentality towards coal is different from, say radio-actives and chlorine for instance.

Note that India and Bangladesh are still unsettled on the implementation of the latter's proposal for another 1,320MW coal-fired power plant initiated earlier than the one with TNB.

Meanwhile TNB's extension of its Manjung coal power plant in Malaysia by additional 1,000 MW is understood to be going ahead as planned.

Power outage: SESB vs SEB

I read with great interest a comment made by one of Daily Express readers published on July 22, 2012. If you still have your weekend copy, you can find it in the forum section.

A comparison was made on the two separate power outages in Sabah and Sarawak which happened in April 2012 and July 2012 respectively. It stresses the big gap in terms of how the situations were handled and of how much SESB is alleged to be lagging behind SEB. An interesting compilation is summarised as follow:

Daily Express, July 22

Just to clarify, SEB is Sarawak Energy Berhad, not as quoted, and it is the holding company that owns SESCO which generate, transmit, distribute and supply electricity throughout Sarawak. In a way, SEB is like TNB while SESB is like SESCO. But, leaving the organisational structure alone, every utility company has the same responsibility, that is to give the utmost care and service to its customers. After all what is quality if the bar on customer satisfaction is never reached.

I will leave it to you the readers to decipher the above information but to be fair to SESB, they did apologise promptly the next day during the 30 April 2012 massive power outage. The press release to offer the consumers thorough explanation was made much later and I suppose the writer was refering to this one when quoting '24 days after the event'.

Furthermore, 'Other event' should include a consequential load shedding excersice many hours after the initial 16-hours power outage on April 30. SESB was struggling to stabilise the power supply to a number of bigger consumers in the West Coast, particularly in Tuaran area. In our case there were places (end users) that had their power supply normalised (totally) the next day.


People can give explanation and choose to disagree, but from the comparison table, we can - without digging further - make some conclusions, or at least perception, among others:

1. Capacitive Voltage Transformers, CVT, contrary to what SESB mentioned in its press release, can cause little disruption to the supply of power.
2. We know that SESB is continuously upgrading its transmission/generation capacity, but we perceive here that compared to Sarawak and West Malaysia, it still has a lot to catch up.
3. Excess in power generated does not guarantee fail-safe operations. SESCO has ample safety margin in its power generation capacity but other factors will still cause outage. Note however, that they will have the luxury of better back up from other sources. Hence, the lesser power disruptions.
4. I have this nagging feeling that we in Sabah are 'fire fighting' rather than doing Planned Preventive Maintenance. The SEB case showed that we can carry out maintenance (unplanned emergency, or planned parts replacement) without putting the whole power network out of service. In other words, don't put the whole State without power just because of one small equipment failure.

A copy of the SESB press release pertaining to the massive power outage has been stored in this blog for future reference.

Let's hope for a blackout-free weekend ahead.


**UPDATE**: Responses by SESB as well as the general public - in the internet or print media - will be quoted/recorded in the Comment section. Do check it out.

RM700 mil Hybrid Solar power for schools

With the huge sum of money spent on rural school electrification, it is hoped that we can close the digital gap between urban and rural students. It should. But of course the main issue is the educational aspects of the rural areas.

 A solar-diesel generator hybrid power unit in one of the rural schools in Sabah

Malaysian Deputy Education Minister Dr Mohd Puad Zakarshi told newsmen recently that the government has allocated RM700 million (US$223 mil) for the implementation of the hybrid solar supply system for 179 rural schools in Sabah that have yet to receive electricity supply.

Out of the total, RM300 million had already been spent for the first phase involving 78 schools which had been fully completed. Another RM400 million was for the implementation of the second phase of the hybrid solar project involving 101 schools.


Facts and figures

Total pledged       : RM700 mil (US$223mil)
Utilised               : RM300 mil
No. of schools     : 179    or    RM3.9 mil per school
Phase 1              : 78 school completed
Phase 2              : 64 schools completed

Currently on-going projects (18 schools):
1. Beluran          - 13 schools
2. Ranau            - 3 schools
3. Kota Belud     - 1 school
4. Sipitang          - 1 school



More hybrid systems are needed?

The 179 rural schools were selected from an initial total of 270 schools in Sabah that do not have electricity from the power grid -  as at 2010. With SESB's target of 95% power supply coverage in 2012, this number should have been significantly reduced.

Electricity coverage by region: Economic Planning Unit and Rural and Regional Development

My personal opinion is that, in a long run, grid connected power is the way to go as the maintenance of the stand-alone solar system components is very much higher than the grid connected system. A study on two of Sabah's rural school hybrid solar power units showed that batteries contributes about 45% of the lifetime cost.

Battery maintenance is crucial. Facts source1

TheGreenMechanics' two cents

Spending millions of Ringgit for rural schools electrification is indeed a noble idea. It opens up a lot of opportunity to the rural students as well as benefiting the community around the school. It close the gap on the availability of online information, as well as getting rid of the limitation to carry out school (and social) activities only during daytime.

The community  - and this must start from the affected schools - must be taught to take care of the facilities. This does not necessarily means they must be able to troubleshoot or repair faulty components but they could start with relaying the information to the agency responsible for maintaining the system.

At the same time they can learn to clean the solar panels and to take important readings from a user-friendly monitors and/or indicators.

source1: Abdul Muhaimin Mahmud - Carl von Ossietzky University

Warning Against Energy Saving Devices

If you haven't heard yet about Energy Saving Device (ESD), it refers to the small 'black box' aimed at reducing domestic power consumption. Marketers claim that such devices can save 20% to 40% of energy resulting in lower electricity bill.

Does it really work, or is energy saving a mere myth?

If you are referring to domestic households my answer is NO! It doesn't work. At least not as per what's advertised. Equipment, machines, gadgets, black box, or whatever they may call it and sold as ESDs had capacitors, which improved the power factor (PF) and reduced the electrical current flow. But the electricity bill will be based on how much power was consumed.

The PF is the ratio between the power required to run a machine compared with the power originating from the utility supply, e.g., TNB, SESB, Sesco. The slight drop in current flow shown in the device often lead the public to think that it equates to a lower electricity bill.

What it does is:

1) improve the power factor,

2) lower the current (normally starting current) flow slightly for a moment depending on the size of the load in relation to the capacitor in the ESD.

As a domestic consumer, you are not significantly affected by both of the above. You do not need to improve your power factor at home as the utility company will not penalise you for lower PF. For the record, TNB requires that all (only) industrial consumers maintain PF at their premises at 0.85 or above.

At the most, you would probably save 1% to 3% but definitely not 40% as claimed by some ESD marketers. Energy saving devices are known to have been sold for around RM200 to RM400, depending on its usage capacity. However, there are also version that are sold at RM1,000 or above.

I have one at home

Out of curiousity, and wanting to find out what's inside the small black box, I purchase a certain ESD for RM250 not too long ago. I don't support such claim, and I didn't expect to save from this but I just need to get the 'feel' of it and to see how the gadget would look.

I will share the picture, here later.

Read the rest of the news piece from Bernama

'Consumers warned against Energy Saving devices'

KEPALA BATAS, April 17 (Bernama) -- Energy Commission Regional Head for Penang, Kedah and Perlis, Ir Md Zakuan Ibrahim has advised the public not to buy energy saving devices which promise to save power consumption by 40 per cent.

The devices which have been sold widely recently, do not live up to its claims and the commission has also retracted its recommendation on the device three months ago.

"The recommendation issued by the Energy Commission is only in regards to safety, not in terms of reducing power consumption. The device confuses consumers as it only allows savings of between one to five per cent, and not 40 per cent," he told reporters after a programme with Penang community leaders.

He said the device, which has been in the market for 10 years, is not a controlled item under the Energy Commission and has no specific legal provision should consumers be cheated.

However, Md Zakuan said the Energy Commission can take legal action through the Consumer Protection Act under the Domestic Trade, Cooperatives and Consumerism Ministry (MDTCC).

So, they are all big fat liars?

I would say not totally.

There are also those that are specifically manufactured for large industrial applications. Of course, in this case, the design is more complex and are suited for specific energy reduction objectives. Industrial applications are more of a solution package, where they are offered as a system rather than a single small 'magic' gadget.

They can be in the form of inverters, power factor capacitor banks, etc., to cater for different purposes related to energy saving. This should not be mistaken for the domestic applications where saving generated is not documented.

For further readings, see what Datuk Peter Chin (Malaysian Minister of Energy, Green Technology and Water) posted in his blog about ESDs.