IPPs owe RM144.12m in arrears to AAIBE till July 31


THE contribution arrears owed to the Electricity Supplies Industry Trust Account (AAIBE) by Independent Power Producers (IPPs) amounted to RM144.12 million until July 31, 2020, the Dewan Rakyat was told.

Energy and Natural Resources Minister Datuk Dr Shamsul Anuar Nasarah (picture) said the AAIBE did not get any annual allocation from the federal government, instead it received contributions from IPPs involved in the power generation industry.

He said IPPs in Peninsular Malaysia contribute one per cent of their total annual income that has been audited after deducting the cost of fuel into this fund, while that of Sabah contribute three per cent.

The total annual contribution is between RM60 million and RM90 million, he said when responding to a question from Datuk Mohd Nizar Zakaria (BN-Parit).

Shamsul Anuar said these fund is channelled to carry out various programmes such as rural electricity supply, research and development (R&D) for the electricity supply industry, including for new energy sources and renewable energy, as well as to conduct training for the electricity sector.

“It is also used to promote the efficiency of electricity consumption, development and promotion of the electricity supply industry and impact management of electricity tariffs,” he explained.

According to the trust deed, he said until 2018, a total of 27 rural electricity supply projects costing RM500 million, 42 industrial development and promotion projects, 18 energy efficiency promotion projects, 52 R&D projects, and 29 training projects costing RM1 billion have been carried out.

Shamsul Anuar said efforts were underway for the payment of arrears to this account.

However, he said the government understood the effect of COVID-19 on the IPPs and they were given the flexibility to make payments in installments and given a reminder from time to time.

Among the main causes of arrears include the acquisition of several IPPs and losses incurred, he added.