Why pay the IPP so much? The biggest thorn in TNB is the high IPP capacity payment estimated to exceed RM11b for the financial year. With Jimah power plant to go on stream this year, TNB could incur an additional RM500m to RM1b IPP payment. This is generally viewed as excessive given TNB current reserve margin is at 47%. The big question is, why pay extravagantly for something you don’t need?
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