Mahathir shows caution on electricity deregulation<\/p>\n
KUALA LUMPUR (AP): Citing the fiasco in California, Prime
\nMinister Mahathir Mohamad said Monday that his government will be
\ncautious about deregulating the government-controlled electricity
\nsector.<\/p>\n
\"Because of the disastrous experience of California many,
\nincluding Malaysia, are more cautious in restructuring the
\nelectricity industry. It is too important an industry to be left
\nentirely to market forces,\" Mahathir said in a speech at a
\nconference on electricity.<\/p>\n
The Malaysian government, currently studying ways to
\nrestructure the sector, was expected to introduce a power-pooling
\nsystem in 2005 in which generation companies would compete to
\nsupply electricity and electricity would be traded like a
\ncommodity.<\/p>\n
But poorly thought-out deregulation of the California power
\nsector has led to electricity shortages in America's richest
\nstate, forcing blackouts and politically unpopular price hikes.<\/p>\n
Asian countries have been spooked by the California
\nexperience. Many countries are already grappling with strategies
\nto ensure adequate power supply over the next decade to cope with
\nexpansion in manufacturing.<\/p>\n
Mahathir said the current electricity sector structure has
\nserved the country \"well' and that changes will have to be done
\ngradually.<\/p>\n
\"It would be better to progress one step at a time and with
\nenough time to measure the effect of those changes before
\nproceeding with the next,\" Mahathir said.<\/p>\n
Mahathir said electricity peak demand in peninsular Malaysia
\nis projected to grow by more than 117 percent to 21,668 megawatts
\nin the year 2010. He said the peak demand in peninsular Malaysia
\nso far this year was 9,948 megawatts.<\/p>\n
The national power utility, Tenaga Nasional, has proposed that
\nthe government restructure the sector to a \"managed market
\nmodel\", with Tenaga continuing to be a dominant power generating
\ncompany.<\/p>\n
Tenaga, which is 78 percent-owned by the government, said this
\nwould avert Malaysia from having a California-type power crisis.<\/p>\n
Tenaga was to sell off part of its power-generation assets to
\nopen the market to competitors. Late last year, Tenaga put on
\nhold a plan to sell some assets until the government's plans for
\nrestructuring became clear.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/mahathir-shows-caution-on-electricity-deregulation-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}