TENAGA ... May 09

TENAGA ON RENEGOTIATION WITH INDEPENDENT POWER PRODUCERS

TENAGA NASIONAL at its Apr 14, 2008 2QE Feb 2009 press briefing was asked if it would ask the new Minister of Energy - PETER CHIN KAH FUI to re-open renegotiations with the independent power producers on their power purchase agreements, the UTILITY replied that it will allow time for the Minister to settle down.

TARIFFS REVIEW
On whether electricity tariffs would be revised come Jul 2009 when the matter came up for review, CHE KHALIB said it would depend on the situation.

" .... It would not necessarily mean a hike, it could go up or down. In the end, however, it will be up to the Government whether to review the gas price or change its assumptions concerning the coal price ...." said CHE KHALIB.

BAKUN PROJECT/UNDERSEA CABLES APPROVED
On the Bakun project, comprising a 2,400MW hydroelectric dam and undersea cables, CHE KHALIB reiterated that it would be one of the matters that would be brought up with the minister.

" .... From what I understand, the dam is just about to be completed. As for the progress concerning the cables, you must keep in mind that we have a new minister now and he may have a different opinion and view on things ...." he said.

The Government announced Apr 24, 2009 that the Cabinet had approved the undersea cables linking Sarawak to Johore.

ELECTRICITY SHORTAGE IN SABAH
Asked about the situation in Sabah, where the state was currently undergoing a shortage in electricity supply, CHE KHALIB said TENAGA was talking to the State Government.

" .... There is this issue concerning the east coast of Sabah, which is in desperate need of power. If it is not resolved within the next two to three years, that area will face a severe power shortage problem ...." said CHE KHALIB.

There had been plans to build a 300MW coal-fired power plant in Lahad Datu, Sabah in 2008. However, the project was scrapped due to environmental concerns.