KUALA LUMPUR (AFX-ASIA) – Tenaga Nasional Bhd may revise its planting-up programme in view of rising electricity consumption in the country, The Star reported, quoting chairman Jamaludin Jarjis as saying.
He said economic growth boosted power demand and the utility firm may now consider fast-tracking certain power plant projects that had earlier been deferred.
Daily peak demand rose to about 10,700 megawatts and hit a record high of 10,730 MW on May 22, the report said, without giving comparative figures. The current demand level is 2,800 MW higher than the daily demand of 7,900 MW during the 1997 financial crisis, it said.
Mr Jamaludin said Tenaga has been monitoring power supply and demand to ensure adequate and uninterrupted supply. Management will also ensure the firm does not incur substantially high costs to accelerate planting-up programmes, he said, adding that SKS Ventures Sdn Bhd’s plant in Pulau Bunting, Kedah and Jimah Power Sdn Bhd’s plant in Negeri Sembilan are likely candidates for the move.
Tenaga also plans to expand its down power generation capacity, he added.
Meanwhile, the company has made provisions for the US$86.94 million legal suit brought against it by UBS Warburg for terminating two options related to a 1997 bond issue, a source familiar with the case told AFX-Asia.
“Tenaga has been prudent in its management and have made provisions for it,” the source said, without saying what the provisions amount to.
UBS Warburg has filed a suit for US$86.94 m against Tenaga for terminating two options in relation to a 10-year US$500 m Yankee bond the utility firm issued in 1997. Tenaga has denied liability in full and filed a defence and counterclaim.
UBS has yet to respond to the counterclaim and is expected to make a defence by end of June, the source said. The source also did not discount the possibility that the matter may be settled out of court.