Tenaga fix power rates

Tenaga fix power rates

KUALA LUMPUR (AFP): Malaysia's power giant Tenaga Nasional Bhd. said yesterday it had agreed with the government that tariffs would remain unchanged for the next two years.

"We have compromised and agreed with the government over the tariffs .... it is still competitive considering cost of development and upgrades," said Tajuddin Ali, Tenaga's executive chairman.

Tajudin said Tenaga Nasional had wanted higher tariffs.

Tenaga last April secured an earning boost when the government approved an eight-percent rise in electricity tariffs despite consumer opposition.

The government also agreed to cap the price of gas sold to Tenaga and independent power producers at 6.40 ringgit (2.3 US cents) per million British thermal unit until 2000.

Kuala Lumpur agreed to the April rise because most of Tenaga's equipment for power supply was imported and the utility giant was facing pressure in terms of development and operational costs.