Energy Commission Annual Report 2010 (ENG)
Energy Commission Annual Report 2010 (ENG)
Energy Commission Annual Report 2010 (ENG)
CONTENTS
67 ENCOURAGING THE DEVELOPMENT OF A 116 Amendments To The Energy Commission Act 2011
TRANSPARENT AND COMPETITIVE ENERGY INDUSTRY 117 Organisational Restructuring
117 Developing Employee Capabilities
68 Implementation Of A Bidding Process For Generation 118 Developing Online Applications
Projects 120 Developing Standard Operating Procedures (SOP)
69 Launch Of The Grid Code And Distribution Code For
Peninsula Malaysia 121 MOVING FORWARD
69 Study On The Sabah Grid System And Drafting Of The 122 ST Transformation Plan
Grid Code
69 Energy Consultative Panel (PPT) 125 ANNUAL FINANCIAL STATEMENTS
2 | ENERGY COMMISSION 2010 ANNUAL REPORT
Tilting Faade
The tilting faade (exterior of the ST Diamond Building) allows self shading for the lower floors, protection from
direct sun rays into the building and a smaller building footprint, resulting in a larger area for landscaping
ENERGY COMMISSION 2010 ANNUAL REPORT | 3
CORPORATE INFORMATION
The Energy Commission (Suruhanjaya Tenaga - ST) is a Electricity Supply Act 1990 (Amendment) 2001
statutory body established on May 1, 2001 under the Gas Supply Act 1993 (Amendment) 2001
Energy Commission Act 2001. It assumed all the functions of Licensee Supply Regulations 1990 (Amendment) 2002
the Department of Electricity and Gas Supply that regulated Electricity Regulations 1994 (Amendment) 2003
the electricity and piped gas supply industries in Peninsular Gas Supply Regulations 1997 (Amendment) 2000
Malaysia and Sabah. ST was established to enhance the Electricity Supply (Compounding of Offences)
effectiveness of the regulatory function in this sector and Regulations 2001
its responsibilities are enshrined by the Energy Commission Gas Supply (Compoundable Offences) Order 2006
Act (2001) and its subsequent amendments and regulations: Efficient Management of Electrical Energy Regulations
2008
VISION
To be a highly effective energy regulator and authority on energy matters.
MISSION
The Energy Commission strives to balance the needs of consumers with those of energy suppliers by ensuring safe and
reliable supply at reasonable prices, protect public interests, and foster economic development and competitive markets in an
environmentally sustainable manner.
CORE VALUES
Excellence
Reliability
Sense of Fairness and Fairplay
To advise the Minister on all matters relating to the To regulate all matters relating to the supply of gas
generation, production, transmission, distribution, through pipelines and to protect any person from
supply and use of electricity as provided under the dangers arising from the supply of gas through pipelines
electricity supply laws; and the use of gas as provided under the gas supply
laws;
To advise the Minister on all matters relating to the
supply of gas through pipelines and the use of gas as To promote efficiency, economy and safety in the
provided under the gas supply laws; generation, production, transmission, distribution,
supply and use of electricity and in the supply of gas
To implement and enforce the energy supply laws; through pipelines and the use of gas supplied through
pipelines;
To regulate all matters relating to the electricity supply
industry and to protect any person from dangers To promote and safeguard competition and fair
arising from the generation, production, transmission, and efficient market conduct or, in the absence of a
ENERGY COMMISSION 2010 ANNUAL REPORT | 5
competitive market, to prevent the misuse of monopoly To carry out any function conferred by or under the
or market power with regard to the generation, energy supply laws;
production, transmission, distribution and supply of
electricity and the supply of gas through pipelines; To review the energy supply laws and to make the
necessary recommendations to the Minister; and
To promote the use of renewable energy and the
conservation of non-renewable energy; To carry on all such activities as may appear to the
Commission requisite, advantageous or convenient for
To promote research into, and the development and the purpose of carrying out or in connection with the
the use of, new techniques relating to performance of its functions under the energy supply
i) the generation, production, transmission, distribution, laws.
supply and use of electricity; and
ii) the supply of gas through pipelines and the use of
gas supplied through pipelines;
The Energy Commission has eleven (11) members appointed by the Minister of Energy, Green Technology and Water with the
approval of the Prime Minister. They are the Chairman, Chief Executive Officer, three (3) representatives from the Government
and six (6) professional members who are experienced in matters relating to engineering, finance, administration and law.
ENERGY COMMISSION 2010 ANNUAL REPORT | 7
Members:
Dato Ir. Aishah Binti Dato Haji Abdul Rauf
Ir. Dr Philip Tan Chee Lin
Permanent Members:
Dato Sri Dr Ali bin Hamsa
Dato Ir. Aishah Binti Dato Haji Abdul Rauf
Ir. Ahmad Fauzi Bin Hassan
Invited Members:
Senior Director, Department of Electricity Supply and Market Regulation
Director, Department of Gas Safety and Supply Regulation
Director, Enforcement and Regional Coordination
Director, Energy Management and Industrial Development
Members:
Datuk Pengiran Hassanel Bin Datuk Pengiran Haji Mohd Tahir
Datuk Ir. (Dr) Abdul Rahim Bin Haji Hashim
Ir. Dr Philip Tan Chee Lin
A Special Committee was established to handle unresolved investigations at the Department of Enforcement and Regional
Coordination, co-chaired by Datuk Ir. (Dr) Abdul Rahim Bin Haji Hashim and Dato Ir. Aishah Binti Dato Haji Abdul Rauf.
ENERGY COMMISSION 2010 ANNUAL REPORT | 9
25
JKRK&N 2/2010
July August September
12 17
JKA 4 /2010 JKBP(P&ST) 2/2010
27
JKRK&N 3/2010
October November December
28 12 14
JKKS 1/2010 JKKS 2/2010 JKA 5/2010
19
JKKS 3/2010
Explanatory Note :
SENIOR MANAGEMENT
IR. AHMAD FAUZI BIN HASAN IR. AZHAR BIN OMAR IR. OTHMAN BIN OMAR
Chief Executive Officer Senior Director, Electricity Director, Enforcement and
Date of Appointment : Supply and Market Regional Coordination
1 April 2010 Regulation Department Department
ENERGY COMMISSION 2010 ANNUAL REPORT | 11
DR. SULAIMAN ABDULLAH PUAN ASMA AINI BINTI MOHD IR. FRANCIS XAVIER JACOB TUAN HAJI ABDUL RAHIM
Director, Gas Safety and NADZRI Director, Energy Management IBRAHIM
Supply Regulation Department Director, Corporate Services and Industry Development Director, Electricity Safety
(up to 16 October 2010) Department Department Regulation Department
12 | ENERGY COMMISSION 2010 ANNUAL REPORT
CHAIRMAN
C
Tan Sri Datuk Dr. Ahmad Tajuddin Ali
ORGANISATIONAL STRUCTURE
ELECTRICITY PRICING
Marlinda binti Mohd Rosli
REGIONAL OFFICE
REGIONAL OFFICE REGIONAL OFFICE
SELANGOR, WP KUALA REGIONAL OFFICE
NEGERI SEMBILAN AND PULAU PINANG, KEDAH
LUMPUR AND JOHOR
MELAKA AND PERLIS
PUTRAJAYA Ir. Idris bin Jamaludin
Md Rasdi bin Abdullah Ir. Md Zakuan bin Ibrahim
Ir. Mustapa bin Abu Bakar
ENERGY COMMISSION 2010 ANNUAL REPORT | 13
LEGAL
Shahrilnazim bin Shaari
COMMISSION SECRETARY
Azidah binti Abdul Aziz
INTERNAL AUDIT
Khairul Nizam bin Anuar
ELECTRICAL SAFETY
GAS COMPETENCY HUMAN RESOURCE
DEVELOPMENT Ismail bin Shafii Sharina binti Hashim
Ir. Fairus binti Abd Manaf
ADMINISTRATION AND
ELECTRICAL EQUIPMENT GAS SAFETY
FACILITIES MANAGEMENT
Ir. Amir bin Hassan Yusni bin Sharif Hamidah binti Abdul Rashid
PROMOTION AND
COMMUNICATION
Md Yuha bin Ismail
PROCUREMENT
Vacant
REGIONAL OFFICE
REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE REGIONAL OFFICE
KELANTAN AND
PERAK PAHANG WEST COST SABAH EAST COAST SABAH
TERENGGANU
Ir. Nur Ali Za bin Omar Che Aziz bin Abdullah Nora binti Abdul Ghani Muhammad Shahrul Azam Mohd Elmi bin Anas
bin Abd. Rahim
14 | ENERGY COMMISSION 2010 ANNUAL REPORT
16 CHAIRMANS MESSAGE
20 CHIEF EXECUTIVE OFFICERS REPORT
16 | ENERGY COMMISSION 2010 ANNUAL REPORT
CHAIRMANS MESSAGE
ENERGY COMMISSION 2010 ANNUAL REPORT | 17
The year 2010 was a challenging one. The surge in Construction of the Energy Commissions Headquarters,
international fuel prices especially of oil and coal, and called the Diamond Building, was completed during the year
declining local gas supply were causes for concern and became available for occupation on March 15, 2010.
throughout 2010. Despite this difficult operating landscape, On June 28 2010, the Energy Commision officially began
electricity producers succeeded in improving their supply operations at its new headquarters. The sustainable 8-storey
performance and fulfilled the growing demand for electricity, building was conceptualised and built with energy efficiency
which showed an increase of 5.8% in Peninsular Malaysia in mind. It has been designed to achieve a building energy
and 6% in Sabah in the year 2010. index not exceeding 85kWh/m2/year in comparison to a
typical office building in Malaysia with an everage building
The year also recorded a reduction of gas in the generation energy index of 250kwh/m2/year. The construction of this
mix. This shortfall was compensated by an increase in other building is the Energy Commissions contribution towards
fuels, especially of coal. The generation mix for 2010 stood the governments initiative of promoting energy efficiency
at 52.4% gas, 41.6% coal 5.1% hydroelectric and 0.4% and green technology in the building industry. For this, the
other sources compared to 58.0% gas, 32.4% coal, 5.9% building has won two platinum accolades from Green Mark
hydroelectric and 3.6% other sources in 2009. Singapore and the Green Building Index Malaysia.
In early 2010, the Prime Minister set a System Average When the amendment to the Energy Commission Act
Interruption Duration Index (SAIDI) target of 700 minutes/ 2001 became effective on February 11, 2010, there was a
customer/year for Sabah. To achieve this target, the well defined separation of duties between the role of the
government allocated RM419 million to enhance the states Chairman and the Chief Executive Officer of the Energy
electricity supply system for generation, transmission and Commission. At the same time, the position of the Chief
distribution. As at 31 December 2010, the overall SAIDI for Operating Officer was abolished and the position of the
Sabah dropped significantly by 76% to 687.39 minutes/ Director for the Electricity Supply Department was upgraded
customer/year. to Senior Director. The Energy Commissions organisational
structure was further strengthened with the establishment
SAIDI for Peninsular Malaysia, meanwhile, registered a of new units and positions to ensure more efficient and
decline from 66.1 minutes/customer/year in 2009 to 62.9 effective management, in line with current developments in
minutes/customer/year. the industry.
Throughout 2010, the Energy Commission and MyPower The role of the Energy Commission as a regulatory body
implemented several transformation initiatives to strengthen of the energy sector depends on the professionalism and
and liberalise the electricity industry by 2020. One of the integrity of its workforce. As a result, the Transformation Plan
initiatives was competitive bidding, which was introduced to 2011-2020 was drawn up to chart the Commissions future
ensure that new power plants are developed at competitive direction for industrial development and regulation. The
prices in the future. A Request for Proposal (RFP) was issued objectives of the Transformation Plan can only be achieved
in November 15, 2010 to select the party that will develop with the support of highly competent and effective staff.
the coal powered 1000 MW power plant which is scheduled
to begin operation on March 1, 2016. On behalf of the Energy Commission, I would like to express
my sincere appreciation to YB Dato Sri Peter Chin Fah Kui,
The Government has also agreed in principle for the Energy Minister of Energy, Green Technology and Water, for his
Commission to implement an Incentive Based Regulation advice and continuous support. I would also like to thank
(IBR) approach in regulating the energy industry and the officials at the Ministry of Energy, Green Technology
when formulating electricity and gas tariffs. Based on this and Water, the Economic Planning Unit and other agencies
approach, operational cost savings achieved in the utility for their support and contributions that have enabled the
operation costs when providing services to consumers that Energy Commission to function more effectively as the
is based on the service standards that have been set, will be regulator of the national energy sector.
shared between the utilities and consumers.
18 | ENERGY COMMISSION 2010 ANNUAL REPORT
Last but not least, I would like to thank all members and
employees of the Energy Commision for their hard work in
making the organisation a strong and competent one.
In 2010, the maximum demand for electricity in Peninsular recorded a substantial SAIDI drop - from 2,868 minutes in
Malaysia grew to 15,072 MW, from 14,245 MW in 2009; and, 2009 to 687.39 minutes in 2010.
in terms of energy, from 94,748 GWh to 102,139 GWh. The
increase reflects the countrys strong economic recovery in In Peninsular Malaysia, there was an improvement in supply
2010. At the same time, the intensity of electrical energy in continuity performance for TNB. Overall, SAIDI fell to 62.9
Malaysia rose by 0.5% from 185 kWh per thousand RM of minutes, while the number of electricity supply disruptions
GDP to 186 kWh per thousand RM of GDP in 2010. for every 1,000 consumers in 2010 declined by 15.6%, from
13.39 disruptions compared to 15.87 disruptions in 2009.
The energy sector on average received a daily gas supply
totalling 1,139 mmscfd from Petronas compared to TNBs On 21 December 2010, the new Grid Code and Distribution
daily average requirement of 1,224 mmscfd. The decline in Code were officiated by the Minister of Energy, Green
gas supply from Petronas to the energy sector is due to the Technology and Water. The 2010 Grid Code is an extension
supply constraints, which rose from 102 days in 2009 to 122 of the 1994 Grid Code, which was enhanced in line with
days in 2010. Out of this total, 69 days were planned while the changes in the electricity supply industry in Peninsular
the rest were unplanned. Malaysia in the last 16 years. The 2010 Distribution Code is
being used for the first time by the electricity distribution
In Sabah, the maximum demand for electricity grew by 8.5% sector in the Peninsula to improve transparency and reliability
to 779.7 MW, from 718.8MW in 2009. The total amount of in the process of planning, developing and operating the
electrical energy consumed used in 2010 was 14.8 GWh, an electricity supply system. Both new Codes were effective
increase of 4.2% compared to 14.2 GWh in 2009. from January 1, 2011.
In 2010, the electricity supply shortage continued to be a The Energy Commission has also started taking steps to
major challenge. The need to increase generation capacity establish Grid Codes specifically for Sabah and Labuan and
is becoming more critical to meet the rapidly rising demand is conducting comprehensive research on the grid system in
of electricity, especially from the commercial and domestic Sabah. These are part of the effort to enable Sabah to have
sectors. The situation was further exacerbated by the a safe, strong and reliable industry structure.
termination of the coal-based power generation project
in the East Coast of Sabah whose goal was to enhance The Energy Commission completed the review of the
electricity supply security in the state. Some areas in service performance standards of TNB in 2010, especially
Sabahs East Coast still depend on ageing diesel power for the types of service that were sources of consumer
plants with waning reliability. Shortages in supply affected dissatisfaction. In line with this review, two categories of
the performance of power stations, and they could not service performance have been identified: Guaranteed
be maintained according to schedule. This had a negative Service Levels which involve the provision of rebates to the
impact on the reliability of these stations, which faced high consumers for levels that are not achieved, and also the
down time and much lower available capacity compared to Minimum Service Levels.
their full generation capacity. In an environment with a low
margin of operations, several operational steps such as load Based on the findings of a study - the Electricity and Gas
management and load relief was implemented frequently Tariff Structure in Peninsular Malaysia and Sabah, the
throughout 2010 to stabilise the system when the load Energy Commission took the necessary steps to introduce
increased. the concept of Incentive-Based Regulation (IBR) to
formulate electricity and piped gas tariffs that enhances the
Following the Prime Ministers 700 System Average effectiveness of economic regulation of the countrys main
Interruption Duration Index (SAIDI) target for the state utility providers. The IBR framework involves changes in
of Sabah in 2010, the industry rose to the challenge and the mechanism to determine and review electricity and gas
22 | ENERGY COMMISSION 2010 ANNUAL REPORT
tariffs structure which promotes operational efficiency of the The Commission is also actively involved in the national
utilities. Through the IBR mechanism, a separate regulatory initiative for nuclear energy development via the Nuclear
account will be created based on supply activities, enabling Power Legislative Development Coordination Working
the Energy Commission to evaluate more accurately the Committee (JKPPPKN). The Energy Commission co-chairs
actual performance of the utilities according to financial the JKPPPKN together with the Atomic Energy Licensing
performance, operational expenditure and capital Board (LPTA).
expenditure estimates submitted to justify a tariff review.
For this purpose, eleven (11) Regulatory Implementation There is room for improvement in electrical safety
Guidelines for the electricity supply and piped gas performance. In 2010, the industry recorded 33 cases of fatal
distribution sectors are being developed. accidents and 36 cases of non-fatal accidents compared to
35 fatal and 21 non-fatal cases in 2009 in the Peninsula and
The Energy Commission was entrusted by the Ministry Sabah. Overall, the rate of victims per million of electricity
of Energy, Green Technology and Water (MEGTW) to consumers in 2010 rose to 8.77, from 7.37 in 2009.
prepare a National Energy Balance (NEB) Report from
2010. To produce the report, the Commission updated To reduce electrical accidents, the Commission increased
the national energy database. Prior to this, the NEB report the number of awareness programmes via the electronic
was prepared by the Malaysian Energy Centre (MEC), now and print media. There were also nationwide programmes
known as the Malaysian Green Technology Corporation targeting those involved in electricity safety standards,
(GreenTech Malaysia). To implement this new function, the which urged vigilance and monitoring of tradesmen,
Commission established the Energy Information Unit that is contractors, electricity and gas installation workers, and
responsible for gathering, storing and providing information also those involved in the sale of electrical appliances. In
on all energy data of the country. With the national energy addition, a study was commissioned to evaluate their level
database under its purview, the Commission will be better of compliance with the Electricity Supply Act 1990 and
served to fulfill its role of planning and legislating the Electricity Regulations 1994.
national energy policies.
In law enforcement, electricity theft was a priority. The
With regards to energy efficiency, the Commissions Commission collaborated with TNB, SESB and the Royal
industrial regulation function is guided by the Efficient Malaysia Police to conduct operations to prevent this crime.
Electricity Management Regulations 2008, where emphasis
is given to ensuring that there are sufficient Electrical Energy To achieve its vision to become an effective regulator for
Managers to meet the needs of the industry. As of the end the countrys energy sector, the Commissions management
of 2010, 132 individuals were registered as Electrical Energy developed the Energy Commission Transformation
Managers. The labelling programme for refrigerators, Programme that consists of three action plans: (a)
television, domestic fans and air-conditioners was also Economic, Technical and Safety Regulation Action Plan;
intensified, with the number of labelled products models (b) Regulation Framework Rationalisation Plan; and (c)
rising to 1,097. In addition, the energy efficiency rating for Corporate Development Plan. The Transformation Plan will
electrical appliances now covers the perlite insulator. be implemented from 2011 to 2020.
The countrys initiative to enhance the use of renewable I would like to express my sincere appreciation and thanks
energy sources for power generation registered marginal to the members of the Commission for their guidance and
improvement. Only two Small Renewable Energy Programme support to the management. I would also like to extend my
(SREP) projects with a total capacity of grid connection 6.2 deepest condolences to the family of our former Chairman,
MW commenced in 2010, i.e. a 1.7 MW biogas project the late Datuk Ir. Mohd Annas Hj Mohd Nor who passed away
and a 4.5MW mini-hydro project. The slow progress in on November 15, 2010. He made immense contributions
the development of SREP projects in 2010 could be due to in shaping the Energy Commission during his tenure as
project owners preferring to wait for the implementation of Chairman and Chief Executive Officer from 2001 to 2006,
the Feed In Tariff (FIT). and this was very much appreciated by all its employees.
ENERGY COMMISSION 2010 ANNUAL REPORT | 23
May Allah bless his soul and place him among the righteous.
CALENDAR OF EVENTS
JANUARY - MARCH
APRIL
MAY
JUNE - JULY
AUGUST - SEPTEMBER
OCTOBER
NOVEMBER
DECEMBER
In 2010, the installed generation capacity in Peninsular The overall annual energy demand rose at 7.8%, from
Malaysia was maintained at the 21,817 MW level as no new 94,748 GWh in 2009 to 102,139 GWh in 2010. Energy sales
capacity was added. TNBs installed generation capacity in 2010 also increased to 90,770 GWh, 8.8% higher from
remained at 7,040 MW, 32.3%, while 67.7% was provided 83,411 GWh in 2009.
by Independent Power Producers (IPP).
ry
ch
ril
ay
ne
ly
st
er
r
be
be
be
Conventional Thermal Gas/Oil 840
Ju
gu
ua
Ap
ob
nu
M
ar
Ju
em
em
em
M
br
Au
Ja
ct
Fe
pt
ov
ec
O
Se
D
N
Open Cycle Gas Turbine Gas 2,455 2008 2009 2010
(MW)
MAXIMUM DEMAND 15000
14000
The maximum demand on the grid system rose from 14,245
MW in 2009 to 15,072 MW in May 24, 2010, an increase of 13000
5.8%.
12000
ry
ch
ril
ay
ai
st
ov er
r
be
be
be
n
gu
ua
Ap
ob
nu
Ju
ar
Ju
em
em
em
M
br
25000 20000
Au
Ja
ct
Fe
pt
ec
O
21817 21817
Se
D
N
19723
15072 2008 2009 2010
20000
14007 14245 15000
14777 14777
15000 13377
10000
10000
6346 7040 7040
5000
5000
0 0
2008 2009 2010
Year
TNB Generation Capacity IPP Generation Capacity
Total Generation Capacity Maximum Demand
ENERGY COMMISSION 2010 ANNUAL REPORT | 33
As of 31 December 2010, the installed generation capacity for the whole of Sabah totalled 1,216.4 MW, while dependable
capacity stood at 1,111.1 MW compared to an installed generation capacity of 1,061.2 MW and dependable capacity of 978.2
MW for 2009.
Breakdown of Installed Generation Capacity and Dependable Capacity by Main Fuel Sources and Areas
800
Overall, the annual demand for electricity increased 4.2%
718.8 779.7
600
673.0
from 14.2 GWh in 2009 to 14.8 GWh in 2010. Energy sales
400
in 2010 also grew by 8.1%, i.e. from 3,818 GWh in 2009 to
4,127 GWh in 2010.
200
12000
MW Highest Maximum Demand
779.7 MW 10000
1000
23 September 2010
900 8000 9,198.2 MWh
17 January Total : 4,926,719 MWh
800 6000
700
4000
600
2000
500
400 0
1 Jan
15 Jan
20 Jan
12 Feb
26 Feb
12 Mar
26 Mar
9 Apr
23 Apr
7 May
21 May
4 Jun
18 Jun
2 Jul
16 Jul
30 Jul
14 Aug
27 Aug
1 Sep
24 Sep
8 Oct
22 Oct
5 Nov
19 Nov
3 Dec
17 Dec
31 Dec
300
200
100
0
1 Jan
8 Jan
19 Jan
22 Jan
29 Jan
6 Feb
12 Feb
18 Feb
26 Feb
6 Mar
12 Mar
18Mar
26 Mar
2 Apr
8 Apr
16 Apr
23 Apr
30 Apr
7 May
14 May
21 May
28 May
4 Jun
11 Jun
18 Jun
21 Jun
2 Jul
8 Jul
14 Jul
22 Jul
30 Jul
8 Aug
13 Aug
20 Aug
27 Aug
3 Sep
10 Sep
17 Sep
24 Sep
1 Oct
8 Oct
15 Oct
22 Oct
29 Oct
9 Nov
12 Nov
19 Nov
24 Nov
3 Dec
10 Dec
17 Dec
31 Dec
24 Dec
PENINSULAR MALAYSIA
18000
16000
14000
S.Rsv
MAXIMUM DAILY DEMAND FOR 2010 12000 IC
10000 Distillate
ST-Oil
8000
The generation profile in May 24, 2010 recorded a 6000
ST-Gas
Go-Gen
maximum demand for 2010 i.e. 15,072MW at 4:00 pm. This 4000
OCGT
Hydro
was an increase of 5.8% compared with the highest demand 2000 CCGT
6000 Go-Gen
2009 8,596 172.8 6,208
OCGT
4000
Hydro
2010 9,605 194.8 6,807
2000 CCGT
Coal
0
The generation profile for May 25, 2010 showed the highest Daily Generation Profile 2010
daily energy demand, at 311.5 GWh.
16000
14000
Daily Generation Profile (Excluding Saturdays, Sundays and Public Comparison of Installed Generation Capacity, Maximum Demand and
Holidays) for 2010 Reserve Margin for Five Years
16000
2006 2007 2008 2009 2010
14000
Installed 18,323 19,723 19,723 21,817 21,817
Generation
12000
Capacity (MW)
10000
SR Maximum 12,990 13,620 14,007 14,245 15,072
8000
IC
Distillate
Demand (MW)
Oil
6000 Hydro
Reserve Margin 41.1 44.8 40.8 53.2 44.8
4000
Cogen (%)
ST-Gas
OCGT-Gas
2000 CCGT-Gas
ST-Coal
0
Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec In 2010, gas was still the main source of generation fuel.
However, the gas generation mix decreased from previous
RESERVE MARGIN years. This contributed to the increase in coal fuel generation
which was due to the shortage and irregularity of gas supply
A comfortable reserve margin in Peninsular Malaysia faced by the power generation sector.
enabled the daily operation of the Grid System to be
planned and handled according to the regulations and Comparative Generation Mix Percentage for 2008, 2009 dan 2010
standards stipulated. This can be seen from the following
graph and table: Fuel 2008 2009 2010
Gas 63.9 61.7 52.8
Coal 29.1 31.8 41.6
Spinning Reserve Average Profile;
Hydroelectric 6.9 6.2 5.1
MW Others 0.1 0.3 0.4
3000
2500
2000
1500
1000
500
Spinning Reserve
0
0:00
1:00
2:00
3:00
4:00
5:00
6:00
7:00
8:00
9:00
10:00
11:00
12:00
13:00
14:00
15:00
16:00
17:00
18:00
19:00
20:00
21:00
22:00
23:00
MW %
Maximum Demand 13,423 61.5
Available Reserve 1,604 7.4
Non-spinning reserve 3,888 17.6
Scheduled Work Outage 683 3.1
Unscheduled Work Outage 1,675 7.7
Derated Capacity 544 2.5
36 | ENERGY COMMISSION 2010 ANNUAL REPORT
The Generation profile for September 23, 2010 recorded the highest daily maximum readings for 2010 at 779.7MW.
Average Generation Profile on September 23 2010 Sabah Maximum and Minimum Demand in 2010
(MW) (MW)
800 1400 Dependable Capacity
750 Dependable Capacity 1,111 MV | July 10, 2010
700 1,040 MV | March 6,2010
1200
650
600 1000 Highest Maximum Demand
Lowest Maximum Demand
550 779.7 MV | Sept 23
537.6 MV | Sept 10
500 800 1500 hrs 1500 hrs
450
400
600
350
Biomas
300 400
250 Diesel
200 MFO-Oil Highest Minimum Demand Lowest Minimum Demand
200 491.1 MV | August 17 360.7 MV | September 11
150 Gas
100
Hidro 0
50
01/01/09
15/01/09
29/01/09
12/02/09
26/02/09
12/03/09
26/03/09
09/04/09
23/04/09
07/05/09
21/05/09
04/06/09
18/06/09
02/07/09
16/07/09
30/07/09
13/08/09
27/08/09
10/09/09
24/09/09
08/10/09
22/10/09
05/11/09
19/11/09
03/12/09
17/12/09
31/12/09
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Hour
DAILY CAPACITY
In line with the increase in average dependable capacity at 1,057 MW, system availability also recorded a good average of 789.9
MW or 74.7%
SYSTEM GENERATION CAPACITY MW on July 10 to fulfil increasing demand for electricity. The
additions enhanced dependable capacity to 1,111.1 MW
The main source of power supply for the East Coast of for the Sabah grid system. Overall, total capacity of 160.5
Sabah comes from diesel power plants which were mostly MW were added by Sabah power plants in 2010. Other
ageing and prone to frequent breakdowns. This had caused additions include 20MW from the mobile generator in POIC
the system to operate at a low reserve margin in the first Lahad Datu, Sabah, 6 MW from the Teck Guan biomass plant
half of 2010. The problem was alleviated with the addition and the 4.5 MW from Sg. Pangapuyan mini hydro plant.
of several units of mobile diesel powered generators to fulfil They were added to the Sabah grid system from January to
electricity demand in Sabah. Meanwhile, in the West Coast December 2010. Furthermore, two power stations based on
of Sabah, most of the power plants are in good operating renewable energy commenced operations with a production
condition except for the combined cycle power plant in capacity of 10.5 MW.
Patau-Patau that had a generator turbine problem and
faced difficulties in obtaining spare parts. The Seguntor and Kina Biopower biomass power plants
have started to show consistent generation performance. In
CAPACITY ADDITION 2010, average daily operation reserve stood at 23%, while
the highest reserve recorded was at 40%, with most of the
On March 6, 2010, Ranhill Powertron II (RPII) began capacity being provided by the Ranhill Powertron (RPII)
operating the GT1 plant with a capacity of 65MW followed power plant.
by the commencement of GT2 also with a capacity of 65
On average, the availability of IPP power plants stood at With low margin of operations, several measures were taken
86% compared to SESB power plants which were operating to stabilize the system when faced with increased load to
at 58%. The low availability was due to ageing plants and avoid interruptions in system operations. From January to
the fact that generation units could not be maintained on June 2010, measures such as demand side management
schedule due to insufficient capacity. This led to a high rate (DSM), load shedding and under frequency load shedding
of unplanned outage at 21.7% (240.8 MW) as opposed (UFLS) were frequently implemented. Load reduction
to planned outage of 1.6% (18MW). In comparison, the through DSM, load shedding and UFLS were conducted
planned and unplanned outage for Peninsular Malaysia in less often after the 130 MW capacity Ranhill Powertron II
2010 stood at 3.1% and 7.7% respectively. commenced operations.
38
0
50
150
200
100
(MW)
4-Jan-10
10-Jan-10
16-Jan-10
22-Jan-10
| ENERGY COMMISSION 2010 ANNUAL REPORT
28-Jan-10
3-Feb-10
DSM
DSM and Reduced Load Shedding After July 2010
9-Feb-10
15-Feb-10
21-Feb-10
27-Feb-10
5-Mar-10
11-Mar-10
17-Mar-10
10-May-10
16-May-10
15-Feb-10
22-May-10
28-May-10
3-Jun-10
9-Jun-10
15-Jun-10
21-Jun-10
27-Jun-10
UFLS
3-Jul-10
9-Jul-10
GENERATION SYSTEM PERFORMANCE Average Plant Equivalent Availability Factor (EAF) for IPP and TNB Power
Plants in 2009 dan 2010
THERMAL EFFICIENCY
99.30
97.29
97.92
98.40
98.07
93.19
95.29
91.22
92.62
90.63
90.47
88.18
84.30
85.98
83.21
78.02
In 2010, the thermal efficiency was consistent for TNBs
combined cycle power plant, but there was an increase
for the open cycle power plant. The increase was due to
a more comprehensive measurement of thermal efficiency
compared to the previous year when TNB Pasir Gudang Combined Cycle Open Cycle Conventional Conventional Hydro
(Coal) (Oil/Gas)
power plant generated power only in September and
October 2009. Thermal efficiency for the combined cycle IPP Average 2009 IPP Average 2010
and open cycle power plants for IPPs was consistent in TNB Average 2009 TNB Average 2010
The thermal efficiency for TNBs oil and gas power plants
EQUIVALENT UNPLANNED OUTAGE FACTOR -
increased in 2010 from the previous year due to the lack of
generation activity at the Pasir Gudang TNB power plant in
EUOF
2009. However, generation activity recommenced in 2010
The EUOF target stood at 4% for the combined cycle and
and thermal efficiency was measured at 25.6%. For the
open cycle plant and 6% for oil/gas fuelled plants. The
coal fuelled plants, the average thermal efficiency was at
performance of combined cycle and open cycle for TNB
33.1% in 2010. Thermal efficiency was influenced by several
power plants declined while the IPPs power plants recorded
factors, including generation type, site condition, delivery
an improvement except for the open cycle plants.
level, maintenance, duration and method of operation.
11.85
(Oil/Gas) (Coal)
3.99
4.38
3.31
1.35
1.61
0.93
0.89
0.33
0.37
PLANT EQUIVALENT AVAILABILITY FACTOR- EAF IPP Average 2009 IPP Average 2010
Four tripping incidents with a load loss of 50 MW and above Lack of generation capacity and reliability of existing ageing
were reported in the Peninsular Malaysia transmission plants have caused frequent operational disruptions to the
system in 2010, compared to two incidents in 2009. This Sabah electricity supply system with load shedding incidents
indicate that the transmission system performance in occuring from time to time. In 2010, there was one tripping
Peninsular Malaysia declined slightly compared to 2009. incident reported in the Sabah grid system with a load loss
However there were no load shedding incidents reported of 50 MW compared to 8 incidents in 2009, a drop of 87.5%.
in 2010. The amount of unsupplied electricity increased However, the number of load shedding incidents surged to
slightly to 310.7MWh from 158.3 MWh in 2009. 76 incidents from 55 in 2009.
In 2010, TNB Delivery Point Unreliability Index (DePUI)- In 2010, DePUI for the grid system in Sabah declined by
System Minutes in Peninsular Malaysia recorded a decline 36% to 20.21 minutes from 31.58 minutes in 2009.
of 17% to 0.85 minutes from 1.02 minutes in 2009.
Delivery Point Unrealibility Index (DePUI) System Minutes for the
Transmission System Trip with Load Loss of 50 MW and above
Sabah Grid
from 2006 to 2010
Minutes
No. of Incidents 154.38*
160
12
10
10 9
120
8 7
6 6 6
6 80
4 4
4
2 2 40 31.58
2 1 18.99 20.21
11.89
0 0 0
0
2006 2007 2008 2009 2010 0
Year 2007 2008 2009 2010
(28 Jul-31
Aug 2007)
No. of Trips Total Incidents No. Of Load Shedding Year
With the new system, TNBs total SAIDI for 2010 increased STEPS TO REDUCE SAIDI OF THE
by 45.7%, from 66.1 minutes/customer/year in 2009 to 96.3
MEDIUM VOLTAGE SYSTEM IN
minutes/customer/year. The higher SAIDI revealed that the
duration of interruption in a year per customer who was PENINSULAR MALAYSIA
affected by supply disruption has risen, indicating a lower
performance from previous years. SAIDI in 2010 was higher The medium voltage systems is the highest contributor to
than the target set of 60 minutes/customer/year. However, SAIDI compared to low voltage systems. As part of the
when calculated with the old software, the 2010 SAIDI was effort to reduce SAIDI in Peninsular Malaysia, the following
at 62.9 minutes/customer/year. Compared to the 2009 measures have been implemented by TNB in 2010 especially
SAIDI of 66.1 minutes/customer/year, a reduction of 4.8% on the medium voltage system:
was achieved.
a) Reducing the load of the medium voltage supply to
below 50% of the supplys capability level;
Monthly SAIDI Comparison Calculated Using the New Enhanced TOMS
b) Identifying and replacing problematic cable
software and the old TOMS software for 2010
connections through the Partial Discharge Mapping
Minutes test programme;
120.00
c) Implementing condition monitoring at the
100.00 96.25 Main Distribution Substations using infra-red
80.00
thermography dan ultrasonic detection techniques;
62.88 d) Introducing the Pre-Moulded Joint Cable connection;
60.00
e) Conducting clearing works on rentice areas;
40.00
f) Expanding the implementation of SCADA/DA
20.00 6.97 8.28 8.72 8.73 8.61 7.75 7.99 7.86 7.75 7.83 8.26 7.50
(supervisory control and data acquisition/ data
6.46 5.83 5.36
5.06 5.06 5.05 5.13 5.01 5.01 5.02 4.94 4.95
0.00
acquisition)
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
(Jan-Dec)
Month
SAIDI FOR SABAH
Enhanced TOMS TOMS
SAIDI for the distribution system decreased by 41% from ELECTRICITY SUPPLY DISRUPTIONS IN
the previous year. Meanwhile, SAIDI for the generation and
PENINSULAR MALAYSIA
transmission system was also lowered by 88% in 2009.
17
16
No./1.000 consumers
15.0
13
11
10.0 9
0.0
2006 2007 2008 2009 2010
Overall SAIDI for KHTP in 2010 stood at 8.44 minutes/ Year
customer/year, higher than in 2009. The increase was due
TNBs Planned Disruptions
to the malfunction in NUR Distribution Sdn Bhds internal
systems in January 2010, causing an operational disruption 1.0
0.86
to 12 main high-tech industrial users. 0.71
0.8 0.76
No./1.000 Consumers
0.6
SAIDI (Minutes/Customer/Year) Breakdown for NUR Distribution from
2006 to 2010 0.4 0.35
0.17
0.2
SAIDI
140 0.0
125 126.13 2006 2007 2008 2009 2010
120 Year
80
20.0
60 16
49 49.66 15
No./1.000 Consumers
15.0
40 13
11
20 2.82 2.85
1.091 2.889 2.50 2.53 0.154 8.84 8.75 10.0 9
0 0
0
2006 2007 2008 2009 2010
5.0
Year
Overall SAIDI Industry SAIDI (HV) Low Voltage SAIDI (LV)
0.0
2006 2007 2008 2009 2010
Year
ENERGY COMMISSION 2010 ANNUAL REPORT | 43
The number of electricity supply disruptions per 1,000 Overall, total electricity disruptions per 1,000 consumers
consumers in 2010 increased slightly to 55 disruptions from in Kulim Hi-Tech Park (KHTP) reported by NUR Distribution
52 disruptions in 2009 which affected the SESB supply Sdn. Bhd. in 2010 rose slightly from 43 to 44 disruptions.
system. The number of disruptions also increased slightly from the
previous years.
Unplanned disruptions represented a high percentage at
88%, as opposed to planned disruptions of only 12% in Unplanned disruption increased by 39% to 18 per 1,000
2010. However, unplanned disruptions increased by 10.7% consumers, from 13 per 1,000 consumers in 2009. However,
to 48 per 1,000 consumers, from 43 per 1,000 consumers planned disruption resulted in a high percentage at 59%
in 2009. compared to unplanned disruption at 41% in 2010. This
showed that planned outage for maintenance work should
be conducted more frequently to prevent bigger disruptions.
SESB Electricity Supply Disruptions Per 1,000 Consumers for 2006
to 2010
SESB Overall Total Disruptions NUR Distribution Sdn Bhd Electriciy Supply Disruptions Per 1,000
80.0
70 Consumers in KHTP from 2006 to 2010
61
No./1.000 Consumers
60.0
40.0
52
43
No./1.000 Consumers
42 43 44
20.0 40.0
0.0
2006 2007 2008 2009 2010 20.0
Year
6 7
40.0
32
30
No./1.000 Consumers
30.0
26 26 26
0.0
2006 2007 2008 2009 2010 20.0
Year
0.0
61 2006 2007 2008 2009 2010
No./1.000 Consumers
60.0 Year
52 49 48
43
40.0
20.0
0.0
2006 2007 2008 2009 2010
Year
15.0 32 36
25 30
13 30
24
10.0
20
10 8
4
5.0 1
0 0
0
2006 2007 2008 2009 2010
0.0 Year
2006 2007 2008 2009 2010 Industrial Consumer (HV) Low Voltage Consumer (LV) Total Unplanned Disruption
Year
30 40
27 25 24 31 36
20 14 15 15 15 24
12 20 1311 14 11 13
10 9 5
2 7 22 1 6 76 7 6
000 002 00 1 2 00 000
0 0
ng
rlis
ka
ng
nu
r
lan
en
ho
go
ra
da
ta
rja aya
ela
ga
id
ina
ha
Pe
bi
Pe
lan
Jo
m
lan
Ke
Ins
Year
m
be raj
Pa
ng
M
Lu
P.P
Ke
Se
Se
Cy Put
re
lah
ala
Industrial Consumer (HV) Low Voltage Consumer (LV) Total Planned Disruption
Te
ri
m
Ku
ge
P
Ju
W
Ne
P
W
ENERGY COMMISSION 2010 ANNUAL REPORT | 45
SARFI (System Average RMS Frequency Index) is used to record the number of voltage dip incidents, taking into account the
voltage percentage value and duration of occurrence. Based on statistical analysis of voltage dip incidents recorded in 94 main
substations (PMU) in Peninsular Malaysia Perlis, Perak, Johor and Kedah recorded the highest SARFI70 compared to the other
states for 2010.
SARFI Comparison for the 11 kV, 22 kV and 33 kV systems in 2010 for SARFI for the Overall System in 2010
Peninsular Malaysia
30
50
43
37 25
40 23
33 31 20
30
15
19 19 16
20 14
11 10
10 5
0 0
11kV 22kV 33kV Overall System
The 22 kV system recorded a high number of SARFI90 (58), SARFI80 (43) and SARFI70 (37) incidents compared to the 11 kV and
33 kV systems. For the overall, SARFI90 registered the highest number of incidents at 36 compared to SARFI80 (23 incidents) and
SARFI70 (16 incidents).
In an effort to provide customers with a better understanding of power quality, several dialogue or seminar sessions on power
quality were held by TNB in several locations in Peninsular Malaysia, particularly for large power consumers. The Energy
Commission was also involved in all briefings.
Note :
x No monitoring at that voltage level
- No incidents or complaints
46 | ENERGY COMMISSION 2010 ANNUAL REPORT
Based on the statistics of the number of customer complaints Voltage Dip Incidents in Kulim Hi-Tech Park
on voltage dips, Selangor reported the highest number with
No. of Incidents and Consumers Involved
97 incidents compared to the other states. For the period
80
from January to December 2010, 39 customers from several 74
international class companies undertaking high technology No. of Voltage Dip Incidents No. of Consumers Affected
10 16
of these enterprises. Incidents such as lightning, damage Caused by NUR Distribution System
to the transmission system, switching activities, third party Caused by TNB Distribution System
If these incidents are evaluated based on IEC 61000-4-11 (Class 3) standard, most of the incidents during the last four years
were found to be above the curve as shown in the graph (left). A large proportion of the voltage dip incidents that occurred in
2010 was beyond the responsibility of the Utility hence consumers should ensure that their equipments used are compatible
with the supply of electricity.
Breakdown of Voltage Dip Incidents in KHTP from 2007 to 2010 based on IEC 61000-4-11 (Class 3) Standard
Percent of Equipment
Nominal Voltage (%)
100.0
90.0
Customers Responsibility
80.0
70.0 Utilitys Responsibility
60.0
50.0
40.0
30.0
20.0
10.0
0.0
0 400 800 1200 1600 2000 2400 2800 3200 3600 4000
Duration (mili seconds)
GAS SUPPLY IN PENINSULAR MALAYSIA The increase in additional natural gas supply volume did not
add to the length of the gas pipeline, as the higher natural
In 2010, the volume of natural gas supplied by the Gas Utility gas volume was distributed to existing consumer premises
Licensees in Peninsular Malaysia continued to increase due and new consumers who were located near to the existing
to the governments decision to reallocate 100mmscfd of pipelines. The increase in gas supply volume saw a rise in
natural gas from the energy sector to the non-energy sector the number of industrial consumers in 2010 to 686 from 640
in order to fulfil industrial demand. The rise in demand was in 2009.
due to the natural gas tariff being far lower than the price
Total Natural Gas Consumption in Peninsular Malaysia
of alternative fuels such as medium fuel oil (MFO), diesel
and LPG. The average natural gas tariff stood at RM15.00/
Natural Gas Consumption, mmBtu
mmBtu, lower than alternative fuel prices, which are
140,000,000
correlated to the world price of oil. 116,579,760
120,000,000 110,606,270 106,359,785
105,474,492
95,917,929
100,000,000
The additional natural gas supplied to the industry was
80,000,000
for a period of 2 years and would end in December 2011.
60,000,000
The increasewas in addition to gas quantity supplied by
40,000,000
Petroliam Nasional Berhad to the Gas Utility Licensees 799,002 880,705 1,001,105 934,766 1,006,564
20,000,000 18,565
12,627 14,713 17,839
totalling 300 mmscfd. The industrial sector was the main 19,838
0
consumer of natural gas and the total consumption in 2010 2006 2007 2008 2009 2010
Year
increased to 116,579,760 mmBtu from 106,359,785 mmBtu Industrial Commercial Residential
in 2009.
48 | ENERGY COMMISSION 2010 ANNUAL REPORT
Consumption of Natural Gas Based on Sub-Industry Categories in Natural Gas Consumers in Peninsular Malaysia
Peninsular Malaysia
Natural Gas Consumption, mmBtu No. of Consumers
35,000,000 12,000
31,631,345 10,433
30,000,000 27,570,080 10,000 8,887
7,960
25,000,000
8,000 6,679 7,032
20,000,000
6,000
15,000,000 11,602,722
10,863,821 9,507,405 10,329,196
4,000
10,000,000 8,250,511
Others
Food, Beverage
Rubber Product
Glass Products
Fabricated Metal
Machinery &
Basic Metal
Equipment
Industries
Non-metallic
& Tobacco
Year
Products
Sub - Industry
The supply of natural gas in Sabah and Labuan by Sabah Energy Corp. Sdn Bhd (SEC) did not show any significant increase from
the previous year due to competition from alternative fuels.
Total Natural Gas Consumption in Sabah Natural Gas Consumers in Sabah and Labuan
Natural Gas Consumption, mmBtu No. of Users
14 13
200,000 185,388
171,598 178,551
180,000 12 11 11 11
160,000
10
140,000 8
120,000 8
100,000
6
80,000 62,236
52,335
60,000 4
40,000
2
20,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0
2006 2007 2008 2009 2010 2006 2007 2008 2009 2010
Year Year
Industrial Commercial Residential Industrial Commercial Residential
A total of 353 complaints were received by Gas Utility Licensees in 2010. The increase in the number of complaints was due
to the rise in the number of industrial, commercial and residential gas consumers. Complaints received were divided into two
categories namely supply disruption and leakage.
The majority of complaints related to gas supply disruptions at the consumers premise were due to shut valves, malfunctioning
meters or pressure regulators. The licensee took immediate action to rectify the situation within the stipulated period in the
Client Charter. Meanwhile, complaints relating to gas supply leakage were due to pipe connection especially at the union
connection, meter and pressure regulator. All leakage complaints reported were for small leakages occurring at consumer
premises and were rectified immediately by the licensees.
ENERGY COMMISSION 2010 ANNUAL REPORT | 49
Natural Gas 5 4 28 33 7 17 94
The overall supply stability and safety performance by gas steps to increase public awareness on the safety of piped
utility licensees is highlighted in the table below. To improve gas supply. Among the steps taken include organising safety
performance, gas utility licensees have taken further action awareness programmes for local authorities and utility
by increasing checks and maintenance on the natural gas contractors. Also, the ST has increased monitoring activities
pipeline system and LPG. Subsequently, licensees have and awareness campaigns involving targeted groups.
also identified and implemented more effective preventive
Leakage throughout the gas pipeline per 1000km no. of leakage/1000km 7.2343
Note:
SAIDI : Supply Average Interruption
Duration Index
SAIFI : Supply Average Interruption
Frequency Index
CAIDI : Customer Average Interruption
Frequency Index
50 | ENERGY COMMISSION 2010 ANNUAL REPORT
The international benchmark indicator, Brent Spot Price, has recorded more stable levels in 2010 i.e from USD75 to USD85 per
barrel compared to the volatile prices seen in 2008 and 2009. Consequently, the prices of other fuels such as Medium Fuel Oil
(MFO) and coal also had similar movements as shown in the graph below.
The last electricity tariff adjustment was in March 2009, when the average electricity tariff rate in Peninsular Malaysia was
adjusted from 32.50 sen/kWh to 31.31 sen/kWh, i.e. a decrease of 3.7%. Although it was proposed that the electricity tariff
should be reviewed every 6 months, this was not implemented as the Government undertook to give huge subsidies on the
price of natural gas to maintain the electricity tariff in order not to burden the people. As of December 2010, the Government
provided a discount of 74% on the gas price to the power generation sector to enable the electricity tariff to be maintained at
31.31 sen/kWh.
Price (RM/MMBtu)
100.00
90.00
80.00
70.00
60.00
50.00 FORMULA PRICE
The world price of crude oil trended upwards and reached USD89.15/bbl in December 2010 and indirectly led to an increase
in the price of natural gas and liquefied natural gas (LPG) in Malaysia. However, the plan to review the natural gas price every 6
months, namely in September 2009, March 2010 and September 2010 was postponed by the government. Hence, the average
natural gas tariff for consumers of natural gas supplied by the Gas Utility Licensees in Peninsular Malaysia was maintained at
RM15.00/mmBtu throughout 2010.
Meanwhile, the price of natural gas supplied by Gas Utility Licensees in Sabah and Labuan was based on the agreement signed
by licensees and consumers.
LPG price for the housing sector supplied by the gas utility licensees were divided into two categories where the LPG price for
low cost housing premises was set at the same level as the 12kg or 14 kg LPG cylinder subsidy provided by the government. On
the other hand, LPG price for medium cost and high end homes was based on market prices.
As a response to the proposal submitted by TNB and Sabah c) Review the economic regulation framework and propose
Electricity Sdn Bhd (SESB) to the government for a review steps to strengthen it; and
of electricity tariff, the Energy Commission took several d) Prepare policy guidelines towards a more effective
initiatives to rationalise and balance the tariff proposal. The economic regulation regime.
main objective is to set the electricity tariff at a reasonable
and fair level for consumers and at the same time provide Among the important aspects of this study was capacity
reasonable profits for the utilities. To help undertake the building. With regard to this, a series of workshops was
study, the Energy Commission engaged the services of a conducted throughout 2010 on the following topics:
consulting firm, SAHA International Limited (now known as Workshop on Economic Regulation Principles
Deloitte Touche Tohmatsu) from Australia to review and to Workshop on Economic Regulation for Senior Managers
evaluate the proposal. The review began in October 2009 Workshop on Regulation in Practice
and ended in March 2010. The main aim of the study was to Stakeholder Workshop on Economic Regulation
achieve the following objectives: Workshop on Generation
a) Review the proposal for tariff revision submitted by Workshop on Weighted Average Cost of Capital (WACC)
TNB, SESB and Gas Malaysia Sdn Bhd (GMSB); Workshop on Modelling the Revenue Requirement
b) Develop an electricity and piped gas tariff structure Workshop on Tariff Setting and Structure
which is cost reflective, efficient, transparent and realistic
for implementation;
52 | ENERGY COMMISSION 2010 ANNUAL REPORT
The planning to ensure an adequate energy supply to Based on the projected electricity demand on November
fulfil demand until year 2030 has been entrusted to the 2010, additional generation capacity of 7,372MW is
Electricity Supply and Tariff Planning and Implementation needed for 2015 to 2020 while additional capacity of
Working Committee (JPPPET) which was chaired by the STs 15,724MW would be required from 2021 to 2030;
gradually.
Electricity demand was updated by taking into account
The Plan was drawn up to ensure there is adequate energy the annual Gross Domestic Product growth projection of
supply to fulfil the demand for the country up to 2030. In 5.5 6.0 % during the period of the Tenth Malaysia Plan.
2010, there were two JPPPET meetings, which were chaired A comparison of the GDP growth rate and the maximum
by the Minister, and they were held in May and December. electricity demand as indicated at the JPPPET meeting
The following decisions were made at the meetings: is shown in the table below:
Additional Generation Capacity till 2020 Generation Mix Forecast in Peninsular Malaysia from 2010 to 2030
After 2020, new gas, hydro and nuclear fuelled plants Reducing the risk of dependence on imported fuel
would be needed to fulfil demand. Nuclear power sources which could compromise the integrity of the
generation with a capacity of 2,000 MW is required electricity supply system due to disruptions in fuel
by 2021 and additional capacities of 1,000MW will be supply.
required in 2024, 2029 and 2030;
To address these issues, a special committee chaired by
The generation mix projection based on the approved MEGTW, with members from the Economic Planning Unit,
generation plan show that by 2020, gas and coal would ST, MyPower, PETRONAS and TNB had been established to
be the two main fuel for the countrys generation sector. commission a study on the electricity generation fuel mix in
This is based on the assumption that: Malaysia and propose a suitable fuel mix model.
PLANNING ISSUES
In Sabah, as in previous years, inadequate electricity supply which are unreliable. The insufficient supply situation has
was still a major issue. The system reserve margin cannot led to other plants not being able to undergo scheduled
be taken as a benchmark due to the low availability and maintenance and this has caused a negative effect on the
dependability of some plants, especially the ageing diesel performance and dependability of these stations, including
fuelled plants. high outages and low available capacities compared to their
dependable capacities.
Currently, electricity supply in Sabah, especially in the East
Coast of Sabah, still depends on ageing diesel power plants
Based on the analysis by the ST after taking into account on the performance of ageing diesel power plants, there is a
need to increase generation capacity from 2010 to 2012 for all new generation projects except for the Ranhill Powertron
project, which will only commence operations in 2013.
The following are some of the short term measures to Delaying the expiry date of diesel power plants owned
be taken by 2012, 2013 and 2015 to prevent insufficient by SESB with a total capacity of 125MW in the East
generation capacity: Coast of Sabah until the coal power plant with a capacity
of 300MW, commences operations in 2016; and
The relocation of the TNB owned gas power plant in
Teluk Ewa with a capacity of 64MW to the East of Sabah. Additional capacity of 73MW would be required by
The plant is expected to begin operations in 2012, 2013, and capacity could be sourced from the Lahad
depending on price viability; Datu Biomass SREP (40MW) or by installing mobile
generators via rental or buy back schemes.
Postponing the operational expiry of SESB owned
power plants with a total capacity of 45MW in the West
of Sabah until the SPR and Kimanis Power plants begin
operations in 2014;
Hydro (Dam) Diesel Palm Biomass iv. Sodium sulphur (NaS) battery system; and
In early 2010, the project to supply electricity from Bakun, Gas Distribution
Sarawak to Peninsula Malaysia with a capacity of 1600MW
could not proceed as planned. Instead, the electricity Gas Demand Requirement
1,224 mmscfd
generated from the Bakun hydroelectric plant was utilised Average Volume
to develop the Sarawak Corridor on Renewable Energy Average Distributed Gas
1,139 mmscfd
(SCORE) project at the request of the Sarawak State Volume
Government. Subsequently, a new coal power plant will Total Nominated Volume 446,777 mmscf
have to be developed to fulfil the capacity requirements
due to insufficient gas supply. The development of the first Total Distributed Volume 415,682 mmscf
coal power plant with a capacity of 1x1000MW has been Total Production (Kerteh and
awarded to TNB and its operations will commence in 2015. 766,353 mmscf
JDA)
Meanwhile, the project developer for the second unit of the
coal power plant which is expected to begin operation in JDA Average Production 326 mmscfd
2016 will be selected through a competitive bidding process
Kerteh Average Production 1,774 mmscfd
whereby bidding shall be opened only to the owners of
existing coal power plants (brownfield site) i.e. Malakoff Total Curtailment Days 122
Corporation Berhad and Jimah Energy Ventures.
1,400
1,300
1,200
1,100
1,000
900
Volume Nominated: 446,777 mmscf (1,224 mmscfd)
Volume Allocated: 415,682 mmscf (1,139 mmscfd)
800 Days of Curtailment: 122
Scheduled: 69 DAYS (PGB letter dated 9 June 2010)
Unsceduled: 53 days
700
Jan 10
Feb 10
Mac 10
Apr 10
Mei 10
Jun 10
Jul 10
Ogos 10
Sep 10
Okt 10
Nov 10
Dis 10
Volume Nominated Volume Allocated
Gas requirement for the electricity supply sector was set Domestic gas sources is depleting and currently, 26%
at 1250 mmscfd till 2011, and will be increased to 1350 of the Peninsular Malaysia gas supply is imported from
mmscfd from 2012 to 2018. The liberalisation of the gas Indonesia, Vietnam and Thailand. PETRONAS also plans to
market will be implemented by PETRONAS from 2015 to import liquefied natural gas (LNG) from foreign countries
accommodate the decline in gas supply from local fields by at international market prices, including LNG from Australia
setting the gas price at market rates from 2015. Through beginning 2015. If gas prices are set at market rates,
this method, third party access will be allowed whereby PETRONAS is expected to be able to import more gas and
gas suppliers other than PETRONAS can bring in gas to LNG which will ensure sufficient gas supply to the electricity
consumers in Peninsular Malaysia. After 2018, the amount generation and industrial sectors.
of gas to be supplied by PETRONAS to the electricity sector
has not been finalised as it depends on its current efforts to
locate sources of gas supply.
As a result of the cancellation of the 300MW coal-fired demand for electricity and gas in the long run, and its effect
power plant in Lahad Datu due to protests by various on the environment.
parties especially Non Governmental Organisations, ST has
proposed that a combined cycle 300MW power plant serves The proposal was presented at the Energy Commission
as a replacement. Meeting and approval will depend on the willingness of
PETRONAS to implement it. Also, the Commission has met
ST has proposed that a gas pipeline be constructed from with representatives of PETRONAS and was informed that
Kimanis to Sandakan for the purpose of supplying the gas. Sabah is facing gas supply curtailment.
ST has also analysed various aspects of the construction of
a gas pipeline from the economic and technical perspective
which includes investment cost and tariff comparison,
ENERGY COMMISSION 2010 ANNUAL REPORT | 61
The instability of gas supply from PETRONAS has forced the Almost 19 million metric tonnes of coal for coal fuelled power
coal units to operate at a high level and this had impacted plants in Peninsular Malaysia is imported from overseas. Out
average stock throughout the year. The level of overall of that total, Indonesia is the highest contributor supplying
coal stock for Peninsular Malaysia was below the minimum 76.7% followed by South Africa at 12.3% and Australia at
stipulated in the PPA between April and October, a period 11.0%
of high energy demand.
In 2010, the generation sector faced a coal supply crisis when
there was major flooding in Queensland in December. The
Level of Coal Stock in Coal Power Plants in Peninsula Malaysia
Queensland region fulfils demand for global thermal coal at
60 million metric tonnes annually and the supply disruption
Max: 3.15 million tonnes
3,000,000 from the region caused the spot price to increase 17% to
2,500,000 almost USD 130/per tonne. Several mine and rail operators
2,000,000 Min: 1.96 million tonnes had to declare force majeure. The Kalimantan region was
also affected by bad weather and flooding in mine areas and
1,500,000
haulage routes. The impact from weather problems in both
1,000,000
KEV
regions were also felt in Peninsular Malaysia, as supplies
500,000 JEV
TBIN
could not be delivered on time and almost led to zero stock
0 JMJG
at the Tanjung Bin Plant.
Jan 10
Feb 10
Mar 10
Apr 10
May 10
June 10
July 10
Aug 10
Sep 10
Oct 10
Nov 10
Dec 10
The lake level at the main hydroelectric plants in Kenyir and sudden reduction in the lake level in 2010. The lack of rainfall
Temenggor showed similar trends as previous years. As in the catchment areas of both the Kenyir and Temenggor
usual, the water level rose at the start and the end of the dams also affected the lake level which reached its lowest
year, coinciding with the rainy season. However, the impact since 2008.
of shortages in gas and coal supply resulted in increased
electricity generated using hydro power. This caused a
Lake Level at the Kenyir Hydroelectric Dam 20082010 Lake Level at the Temenggor Hydroelectric Dam 2008 2010
130 234
1-Jan
1-Feb
1-Mar
1-Apr
1-May
1-Jun
1-Jul
1-Aug
1-Sep
1-Oct
1-Nov
1-Dec
1-Jan
1-Feb
1-Mar
1-Apr
1-May
1-Jun
1-Jul
1-Augs
1-Sep
1-Oct
1-Nov
1-Dec
Projected
Actual
ENERGY COMMISSION 2010 ANNUAL REPORT | 63
The extension of the concession period for the five first generation Independent Power Plants (IPP), including the decision to
switch the Powertek and PD Power plants to combined cycle, depends on the PPA renegotiation between MyPower, KeTTHA
and ST. The following are the five first generation IPPs which have a combined capacity of 4105 MW:
The extension of the period of operation for TNB owned power plants and the development of new power plants including the
option to use the 220MW gas turbine owned by TNB that is currently not utilised, will contribute an additional capacity of 3750
MW up to 2020. However, the extension of TNB owned power plants is subject to detailed studies on the lifespan of the plants.
ST is responsible for promoting the development and streamlining the implementation of SREP projects apart from conducting
technical and financial evaluation of SREP applications that are submitted to them. Subsequently, it presents the proposal to the
Special Committee on Renewable Energy (SCORE) for approval.
The following are the achievements of the SREP Programme in 2010:
Two SREP projects with a total grid connected capacity of 6.2 MW have been commissioned and operational in 2010,
i.e. a biogas project (1.7 MW) and a mini-hydro project (4.5 MW).
The total number of SREP projects operational up to the end of 2010 stood at 11 with a grid connected capacity of 61.2
MW
Throughout 2010, a total of 4 new projects with a capacity of 37 MW obtained SCOREs approval.
No. of
Capacity to Grid
No. Fuel Source Approved Status
(MW)
Projects
1 Biomass Empty Fruit 4 projects with a total capacity of 40MW were
18 178
Bunch (EFB) operational
Wood Waste 1 5 Project approved in Nov 2010
Rice Husk 1 10
Solid Waste 1 5 The project is operational
2 Landfill Gas 3 1 project with a capacity of 2MW is operational
3 Biogas (agro-based) 6 15.85 1 project with a capacity of 1.7 MW is operational
4 projects with a total capacity of 12.5MW are
4 Mini-hydro 14 80.2
operational
5 Wind and solar 0 0 No applications received
11 projects with a total capacity of 61.2 MW
TOTAL 43 297.05 MW
capacity were operational
64 | ENERGY COMMISSION 2010 ANNUAL REPORT
MW
70
60
50
40 The Start of SREP The graph below shows the progress of SREP projects
RE Policy &
30 RE Tariff
Action Plan that have been commissioned since the start of
increase 24%
Announcement
20 the programme. Eleven projects have commenced
10
operations to date, with a total capacity of 61.2MW.
0
2001 2005 2008 2009 2010 Total
Tahun Cumulative
ISSUES AND CHALLENGES Generally, the increase in the electricity sales tariff for
biomass and biogas to 21 sen/kWh which was announced
ST was directly involved in the discussions and drafting of on August 2008 boosted the development of SREP
the Renewable Energy Act (RE Act) and the Sustainable programmes. This could be clearly seen in 2009 when 7
Energy Development Authority Act (SEDA Act),tabled for projects with a capacity of 43 MW commenced operations
the first time at the Dewan Rakyat on December 15, 2010. In successfully.
the Act, the Feed-in-Tariff (FiT) mechanism was introduced
which will see RE entrepreneurs enjoying premium tariffs In 2010, the implementation of SREP projects declined from
per unit of electrical energy generated using RE sources the previous years and this could be due to some project
stated in the Act. entrepreneurs preferring to wait for further developments
in the FiT mechanism.
Throughout 2010, ST received various requests from
interested parties to develop RE projects. This was
probably the result of increasing interest from the public
due to the publicity given to the FiT mechanism which
will be implemented in 2011. Although there were many
applications received for the SREP project, some of them
were incomplete which made the assessment process more
difficult.
ST also undertook activities related to the development of Legislative Development Coordination Working Committee
nuclear energy in line with the governments aspiration of Meeting (JKPPPKN) in 2010 in view of STs role as the co-
using nuclear energy as one of the electricity generation chair of JKPPKN with AELB. A series of discussions on the
options post 2020, especially in Peninsular Malaysia. ST issue of the Licensing of Nuclear Plants were also held.
played a major role in coordinating the Nuclear Power
ST chairs the National Steering Committee (Project Review system in houses and buildings for electricity generation.
Committee) that acts as the coordinator for the Malaysia The programme targets the installation of solar powered
Building Integrated Photovoltaic (MBIPV) Project and plays system with a total capacity of 1,200 kWp which is connected
a role in monitoring and financing the project under which to the grid. As of June 2010, the Solar 1000 programme
the Solar 1000 initiative was launched in 2007. has obtained 167 approvals with a capacity of 1524 kWp,
and 71 of the projects with a total capacity of 283kWp had
Under the Solar 1000 programme, subsidies will be given commenced operations.
to members of the public interested in installing the BIPV
There are 16 interconnection projects proposed under Berhad (TNB) system in Peninsular Malaysia. However, the
the ASEAN Power Grid Consultative Committee (APGCC) project has yet to be implemented.
and one of them is the Sumatera - Peninsular Malaysia
Interconnection. The objective of the project, scheduled The cancellation of the energy supply project from the Bakun
for completion in 2015, is to establish a bilateral capacity hydroelectric plant via undersea cable from Sarawak to
sharing collaboration between the Perusahaan Listrik Peninsular Malaysia also has affected the projects proposed
Negara (PLN) system in Sumatera and the Tenaga Nasional under the ASEAN interconnection collaboration.
66 | ENERGY COMMISSION 2010 ANNUAL REPORT
Recycling Of Water
Recycling is one of the major concepts applied in the ST Diamond Building, including the recycling of water
ENERGY COMMISSION 2010 ANNUAL REPORT | 67
The Government decided that the capacity addition for 2015 Implementation Schedule for the Limited Bidding Process
and 2016 should be done via a competitive bidding process
to ensure cost competitiveness in the procurement of the Issuance of Request For Proposal 15 Nov 2010
new power plants. To achieve this objective, ST appointed Briefing prior to bidding 10 Dec 2010
consultants to advise on whether the coal power plants
Briefing process 16 Nov 2010
could be completed by 2015 and 2016 if a competitive 18 Mar 2011
bidding process was implemented, as reserves would be
Bidding submission 15 April 2011
low by that time.
Bidding evaluation 15 April 2011
30 May 2011
The construction of coal powered plants with a capacity
of 1000MW by 2015 and 2016 is essential to ensure Invitation letter to the selected 31 May 2011
bidder
adequate electricity supply in Peninsular Malaysia. After
evaluating factors such as timing, the best option to secure Bidding negotiation and project 6 June 2011
agreement with the selected bidder 15 July 2011
dependable electricity supply at a competitive price for
consumers without the risk of insufficient electricity supply Issuance of offer letter to the 15 September 2011
successful bidder
in 2015, the construction of the first unit of the coal power
plant was awarded to TNB Janamanjung and the plant is Signing of PPA and CSTA Not later than
15 October 2011
expected to be operational in March 2015.
Date of financing is finalised Date as proposed by
the bidder (but not
The second 1000 MW coal power plant is scheduled to later than 15 Sept
commence operations in 2016. ST was given the mandate 2012)
by the government to undertake a limited bidding process.
It subsequently formed a working committee called FirST
Power to implement the limited bidding. The committee
consists of officers from ST and consultants appointed by
ST:
4 Finance Fieldstone
Sabah was also included when the ST initiated steps for the developing short, medium and long term plans. The Sabah
preparation of its own Grid Code for Sabah and Labuan. and Labuan Grid system will emphasize the Single Buyer
The services of an international consulting firm was engaged model in operating the Sabah Grid to enhance operational
to help develop the Sabah and Labuan Grid Code, also to transparency and interaction among SESB and power
prepare a report on the Sabah grid system. These were stations, especially IPPs. Apart from that, the operational
part of the efforts to enable Sabah to also have a secure, integration involving generation, transmission, distribution
integrated and dependable industry structures. The study networks as well as systems not connected to the grid will
on the Sabah grid system would enable ST to obtain be taken into account in line with the uniqueness of the
an overview of the status of the grid system apart from Sabah grid system.
providing an additional reference for ST and also SESB in
As in the previous years, the ST as the Energy Consultative d. Awareness and Acceptance towards the Development
Panel (PPT) Secretariat held two meetings on April 28 and of Nuclear Power Plants by the Malaysian Nuclear
December 16, 2010. The PPT meetings received good Agency (ANM); and
response as it discussed the current issues in the energy e. Consumer Issues Metering, Billing and Disconnection
industry. of Electricity Supply by Tenaga Nasional Berhad (TNB).
Several discussions were held with the PMO and TNB to and fairness of the Grid System Operator and Single Buyer,
find the best way to implement ring-fencing to have Grid without involving large structural changes and which can
System Operator and Single Buyer that are neutral and be adapted to the current TNB practices. As at the end of
fair in operating the electricity supply system. The aspects 2010, the initiative were still being studied.
emphasised were the efforts to improve the transparency
ENERGY COMMISSION 2010 ANNUAL REPORT | 71
Photovoltaic Panels
Photovoltaic panels are integrated as part of the ST Diamond Building design to harness solar energy. The
total installed photovoltaic capacity is 71.4 kWp which feeds directly to the national grid.
ENERGY COMMISSION 2010 ANNUAL REPORT | 73
No. of Models
Electrical Appliance
2009 2010
Air Conditioners 110 272
Refrigerator 25 23
Fan 200 314
Television 170 288
Insulators 25 25
Ballast 31 33
High Efficiency Motors 74 136
Fluorescent Lamps - 6
Total 635 1,097
ENERGY COMMISSION 2010 ANNUAL REPORT | 75
As a developing country, Malaysia depends very much on sectors. The rise in GDP growth, increase in population and
its energy resources, especially electricity energy sources changes in daily lifestyle, which are more dependent on the
to drive its economic growth. Almost all of electricity use of technology, are factors that contribute to the rise in
generated is used to fulfil domestic demands in various electricity consumption in the country.
Electrical Power Intensity is the electricity energy consumption to produce one unit of
Gross Domestic Product (GDP). Electricity Intensity is used as one of the indicators to
measure the efficiency of domestic electricity consumption.
Intensity of Electricity Consumption in 2000 to 2010 at Constant Year 2000 Price (RM Thousand)
190 186
184 185
185 182
181 181 180
178
180
176 175
175
172
170
165
238
155
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
In 2010, the national electrical power intensity rose by of energy consumption to drive the national economic
0.5% from 2009. However, looking at the trend from 2000 growth could be reduced by increasing the use of energy
to 2010, electrical power intensity in the country increased efficient technologies in its economic activities. With the
by 8.1% or at an average growth of 0.8% annually. Higher extensive use of energy efficient technologies, the countrys
living standards and a growing economy were among the economy could grow without a corresponding increase in
factors that contributed to the increase. However, the rate energy consumption.
ENERGY COMMISSION 2010 ANNUAL REPORT | 77
In 2010, several initiatives were undertaken by the Commission to enhance the level of electrical safety in the country based on
feedback from the industry and the demands of the electrical safety regulation framework stipulated in the Electricity Supply
Act 1990 and Electricity Regulations 1994. The following were among the initiatives undertaken:
Accident Per Million Electricity Consumers (2002-2010) Causes of Electricity-related Accidents (2002 2010)
Industrial
Premises
Light Shelf
The light shelf is an architectural element that allows daylight to penetrate deep into the ST Diamond
Building. Not only do light shelves allow light to penetrate through the building, they are also designed
to provide shading near the windows, due to the overhang of the shelf, and help reduce window glare.
STs main objective is to undertake its functions as the ISSUANCE OF PUBLIC LICENCES
regulator and enforcement body under the laws and
regulations stipulated in the Electricity and Gas Laws and In 2010, ST issued a total of 20 public licences and 2 SREP
Regulations. The functions and tasks performed by the licences compared to 42 public licences and 4 SREP licences
organisation are to:- in 2009.
Issue public and private installation licences The legalisation process for unlicensed installations was still
Register installations, contractors and competent ongoing in 2010 with continuous monitoring of premises
persons involved in the supply of electricity for personal and third
Conduct competency examinations party usage. Throughout 2010, inspection and enforcement
Issue competency certificates were carried out to ensure legal compliance of the following
Issue accreditation to competency training institutes premises reported to have conducted electricity distribution
Issue certificates of approval to import and manufacture and supply activities without licence. They were:
electrical appliances and gas equipment
Inspect contractors premises and installations i. PLUS Expressways Berhad
Investigate accidents, fires and complaints ii. Fawanis Sdn Bhd
Monitor the manufacture, importation, distribution and iii. Malaysia Airports Sdn Bhd (MAS)
sale of electrical appliances. a) MAS Subang, Selangor
Monitor electricity and gas supply activities b) MAS Kuala Terengganu,Terengganu
c) MAS Alor Setar, Kedah
iv. Plaza Hang Tuah, Malacca
ISSUANCE OF PRIVATE LICENCE (FOR
INSTALLATIONS OF 5MW AND BELOW)
PRIVATE GAS LICENCES
In 2010, a total of 156 new private licences had been issued
by ST via its regional offices. Meanwhile, a total of 1,330 A Private Gas Licence is issued to person/persons who
private licence renewals were made during this period. supplies and consumes gas through a pipeline in his
own premise or in the property or premise of the owner
Statistics of Private License Issuance by Regions in 2010 or resident. Private Gas Licence holders is divided into
seven categories: hotels, hospitals, markets, educational
institutions, recreational centres/clubs, restaurants and
New Private Reissuance of Private others. The total number of new applications and renewal
Regional Licence Licence
of gas licences increased to 877 in 2010, from 637 in 2009.
2010 2010
Ipoh 1 70 Private Gas Licence
Johor Bahru 10 148 No. of Licences
129
(15%) 205
Markets (23%)
83
(9%)
110
(13%) 185
Hospital
(21%)
107
58 Restaurants
(12%)
(7%)
Hotels
Recreational Centres
ISSUANCE OF ELECTRICAL
INSTALLATION REGISTRATION
CERTIFICATE
Installation Installation
Registration Liquid Petroleum Gas (LPG) Installation
Regional Re-registration
2010 2010
Ipoh 19 622
Johor Bahru 117 1, 956
Kota Bharu 39 359
Kota Kinabalu 49 585
Malacca 55 530
Butterworth 167 1, 055
Kuantan 44 481
Petaling Jaya 519 2, 408
Sandakan 35 531
Total 1, 044 8, 527
APPROVAL OF GAS INSTALLATIONS (283 for natural gas and 1,560 for LPG) from 1,312 the
previous year. The approvals issued also covered approval to
Total applications for approval to install (ATI) and approval install metering stations, regulation stations and additional
to operate (ATO) for both natural gas and LPG installations gas installations.
showed a significant increase to 1,843 applications in 2010
60
50
No. of New and Renewals of Registration of Electrical Contractors
by Region in 2010 40
30
46
1200 393
Electrical Wireman and Chargeman Competency Examination (Theory) Statistics for 2010 Session
6 A4-1 55 17 38 30.90%
8 B0-2 53 12 41 22.60%
9 B0-1 22 8 14 36.40%
12 B1 4 2 2 50.00%
13 B4 28 19 9 69.70%
A total of 287 candidates sat for the practical and oral examinations for the High Voltage Category (B0 to B4) in 2010.
Candidates who sat for these examinations consisted of new candidates and repeat candidates. They were required to sit for
the High Voltage switching system and equipment course at the Sultan Ahmad Shah Training Institute (ILSAS), Bangi prior to
the examination.
1 11-13 Jan-2010 21 8 13
2 8-12 Feb-2010 41 28 13
3 17-26 May-2010 51 31 20
4 23-26 Aug-2010 21 13 8
5 1-3 Sep-2010 15 4 11
6 18-29 Oct-2010 82 48 34
7 15-16 Nov-2010 13 10 3
8 13-30 Dec-2010 43 22 21
continue here
The Electrical Services Engineer (ESE) and Competent Electrical Engineer (CEE) competency examinations were conducted 8
times while there was no examination held for Electrical Supervisors. The examination dates were depicted in the table below.
A total of 34 qualified candidates sat for the exams and 30 passed.
2 22/03/2010 3 3 0
3 31/05/2010 6 5 1
4 01/06/2010 6 6 0
5 09/08/2010 4 2 2
6 15/10/2010 3 2 1
7 18/10/2010 4 4 0
8 17/12/2010 4 4 0
Total 34 30 4
In 2010, a total of 14,779 electrical competent persons were registered either by electrical installations, industry, commerce or
institutions with 4,246 new registrations.
A total of 6,878 Electrical Competency Certificates were issued in 2010 to private candidates who sat for exams in ST offices
and at accredited institutions.
Certificate Category
Through ST Offices Total
PW END PJE G/S PK PE JPE JEK
Notes:
PW : Electrical Wireman PK : Cable Jointer
END : Endorsement PE : Electrical Supervisor
PJE : Electrical Chargeman JPE : Electrical Services Enginer
G/S : Change Of Certificate JEK : Competent Electrical Engineer
88 | ENERGY COMMISSION 2010 ANNUAL REPORT
ACCREDITATION OF INSTITUTIONS
A total of 17 institutions were given permission and accreditation to conduct competency courses and examinations. To ensure
that the accredited institution fulfils the stipulated criteria, audits were conducted on them.
Throughout 2010, ST conducted written and oral (interview) examination for gas competent persons. The written examination
was taken by candidates who do not fulfil the stipulated exclusion criteria. Candidates who passed the written examination
were called for interviews prior to the issuance of the Competent Person Certificate. Candidates who qualified to attend
interviews included those who have been exempted from written examinations or had passed courses in gas pipeline organised
by accredited institutions.
A total of three written examination sessions were conducted in 2010 and four candidates sat for the examinations. Meanwhile,
14 interview sessions were held and attended by 32 candidates.
Examinations
There were no accreditations given for gas competency courses and the number of accreditations remained at three educational
institutions.
Gas Competent Persons play an important role in guaranteeing safety in activities of gas supply through pipelines. Gas
Competent Persons have sufficient knowledge and skills in gas installation. As at the end of 2010, the number of gas competent
person certificates issued stood at 693 that included gas engineers, gas engineering supervisors and gas fitters. However, only
326 or 47% of the 693 competent persons were registered in 2010.
APPLICATION TO RENEW CERTIFICATE from 2009. Several applications were not approved due
to the failure to submit the latest test reports, failure to
For renewal applications, the total number of certificate show proof of purchase of the SIRIM-ST label and delay in
of approval issued in 2010 stood at 2,557, reporting submitting renewal applications i.e. 14 days from the expiry
an increase of 0.7 % from 2538 in 2009. The renewal of date. The average processing rate for renewal applications
certificates of approval to manufacture increased by 7.2% is 245 applications to manufacture and import.
while certificates of approval for imports dropped by 2.5%
RELEASE LETTER TO IMPORT APPLIANCES The monitoring of the import of electrical appliances for
personal use was also made to ensure that appliances fulfil
The application for release letters to import electrical the stipulated standards. This action is taken to ensure
appliances for specific purposes such as research and re- that the country is not a dumping ground for substandard
export increased from 527 in 2009 to 570 applications electrical equipment. The total number applications for
in 2010. However, applications for the validation of release letters to import electrical appliances for personal
uncontrolled items had decreased from 367 applications in use stood at 1,573, involving 3160 models.
2009 to 337 applications in 2010.
Certificate Certificate of
Certificate of Validation
of Approval Approval to Release Letter Certificate
Approval to Letter for
Year to Import, Manufacture, to Import of Approval Total
Import and Non-Controlled
Display, Sell and Display, Sell and Equipment Renewal
Display Items
Advertise Advertise
Gas fittings, appliances and approved equipment consisted In 2010, only one application to manufacture, 5 applications
of components installed on the natural gas and liquid to import and 29 applications for gas fittings, appliances and
petroleum gas pipeline system such as pipes and fittings, equipment were approved. The cumulative total number of
meters, valves, pressure regulators, gas leak detectors, approvals issued up to 2010 for gas fittings, appliances and
hoses and cookers. equipment stood at 38, 105 dan 583 respectively.
Certificate of Approval to Assemble, Manufacture or Import Gas Fittings, Gas Appliances and Gas Equipment
Certificate of Approval for Gas Fittings, Gas Appliances and Gas Equipment
ST always monitors and ensures that certified competent The Examination Committee was formed to endorse,
persons are of a high calibre and fulfil the requirements discuss and decide on current issues and policies related to
of a growing industry in line with new technological competency examinations.
developments. The industry needs competent supervision
to ensure that electricity and piped gas consumption is ELECTRICAL WIREMAN AND ELECTRICAL
always safe. Various efforts have been undertaken by ST CHARGEMAN COMPETENCY EXAMINATION
to ensure that the competent persons it certifies are of a (THEORY) MARKING WORKSHOP
high quality, meeting the needs of the industry. Among the
efforts undertaken include: The workshop was organised as part of STs effort to uphold
the integrity, ensure transparency and enhance the quality
SEMINAR/DIALOGUE ON COMPETENCY of answer sheet marking. A total of 3,375 answer sheets
ENHANCEMENT WITH COMPETENT PERSONS were marked from candidates in 13 categories. Out of that
FROM INDUSTRY AND INSTITUTIONS 2010 total, only 21.12% (713 candidates) passed and qualified to
sit for the practical and oral examination. The practical and
The objective of the seminars and dialogues was to enhance oral examinations for low voltage wireman and chargeman
awareness and understanding of competent persons were conducted at the regional offices while the test for
involved in the electricity supply industry regarding the the high voltage chargeman category was organised by
application of the following standards, MS IEC 60364:2003 the head office at the Sultan Ahmad Shah Training Institute
Electrical Installations of Building, MS 1936:2006 Electrical (ILSAS) in Bangi.
Intallations of Building Guide To MS IEC 60364, MS
1979:2007 Electrical Installations of Building Code of EXAMINATION COMMITTEE MEETINGS AT
Practice and MS IEC 60038 Nominal Voltage for Low ACCREDITED INSTITUTION LEVEL/ WORKSHOPS
Voltage Supply System as guidelines for wiring installations TO STANDARDIZE EXAM PAPERS AMONG
in buildings.
INSTITUTIONS/ MONITORING OF COMPETENCY
EXAMINATION AT ACCREDITED INSTITUTIONS
The seminars also created awareness among potential
competent persons currently working in the electricity
ST attended meetings and workshops and also monitored
industry of the requirements needed and the competency
competency examinations at accredited institutes to ensure
examination procedures in order to provide them with a
that the quality of competent persons are of the required
better understanding on the need to have a comprehensive
level. The following is the list of meetings and workshops
and secure electrical wiring/installation system. In addition,
held:
these seminars and dialogues served as an avenue for
Institutions Examination Committee Meeting
customers to voice out their problems and propose
Workshops to standardize competency examination
solutions for evaluation to further enhance STs services to
questions at Institutions
its customers.
Competency Monitoring of Examinations at
Accredited Institutions
Date and Venue of Competency Enhancement Seminars with Competent
Persons from Industry and Institutions in 2010
Inspections on the premises of licensees were conducted as a measure to monitor their operations to ensure licensing
requirements have been met as well as to discuss operational issues. Throughout 2010, six visits to the premises of licensees
were organised by ST.
Type of Public
No. Name and Address Capacity (MW) Date of Visit
Licence
1. Kuantan Port Consortium Sdn. Bhd. Distribution 3.50 May 3, 2010
5. Segari Energy Ventures Sdn. Bhd. Distribution 1,303 August 25, 2010
In 2010, ST conducted 1,046 inspections on the operations of installations, contractors and electrical appliance sellers/ importers/
manufacturers compared to 596 inspections in 2009.
Inspection
Area Office Premise of Vendor/ Total
Installation Contractor
Importer/Manufacturer
Ipoh 30 30 21 81
Johor Bahru 16 25 6 47
Kota Bharu 49 9 9 67
Kota Kinabalu 57 7 8 72
Malacca 40 56 20 116
Butterworth 50 15 32 97
Kuantan 55 26 10 91
Petaling Jaya 299 77 3 379
Sandakan 63 11 22 96
Total 659 256 131 1,046
96 | ENERGY COMMISSION 2010 ANNUAL REPORT
The following steps were taken to enhance the level of The following initiatives have been carried out to enhance
compliance to meet the requirements for installation the level of compliance towards the need to obtain STs
registration and licensing of electricity supply: approval for the manufacturing, importation and sale of
electrical appliances:
Increased monitoring and issuance of notices and
legal action taken so that the owner or management Strengthened ties and collaboration between ST
of installations register and renew installation for and other enforcement agencies such as MDTCC,
Certificate of approval and obtain public licence to Customs, Police and SIRIM in monitoring and
supply electricity. enforcement on electrical appliances sold, and
brought into the country;
Increased compounds and prosecution for
preventive measures and build awareness. Enhanced monitoring and increased notices issued
on the premises of manufacturers, importers and
vendors of electrical appliances who failed to obtain
approval or label electrical appliances;
STs inspection on unlicensed and unregistered power plant installations ST officers inspecting electrical appliances sales
ENERGY COMMISSION 2010 ANNUAL REPORT | 97
A total of 240 inspections and testing of gas installations were conducted in 2010. Inspection of installations were conducted
to ensure that the work performance of contractors and competent persons fulfill the stipulated standards and regulations while
the inspection of current installations were part of measures to enhance the safety of gas installations already in operation.
A total of 338 investigations on complaints, accidents and fires were conducted by ST in 2010 from 299 in 2009. Of this, 69 were
investigations into electrical accidents and 30 were investigations into fire believed to have been caused by electrical problems.
Sandakan 19
Petaling Jaya 133
Kuantan 35
Penang 177
Malacca 26
Kota Kinabalu 20
Kota Bharu 25
Johor Bharu 22
Ipoh 29
In 2010, a total of 401 complaints or 96% of 420 complaints Complaints Received from 2008-2010
received were resolved, whereby ST provided the necessary
No. of Complaints
response to the complainant and the utility provider was 420
450 382
asked to provide feedback or take appropriate action.
400 334
350
Most problems or complaints brought up by the consumers 300
In 2010, three cases of gas accidents were reported. However, no deaths occurred. The accidents were caused by gas leakage
due to consumer negligence and third party works.
ST officers inspecting documents at a premise during a Ec-TNB joint raid ST and TNB Officers inspecting the distance of transmission lines from
to prevent electricity theft the illegally constructed building
ENERGY COMMISSION 2010 ANNUAL REPORT | 101
Sunken Garden
To reduce the operational time of the jet fans, natural ventilation openings are introduced
into the car park on each side of the ST Diamond Building, including a sunken garden at
Basement 1 linking directly to the car park.
Overall, ST received 334 complaints throughout 2010 These cases usualy involved tenants who failed to settle their
covering various service aspects. A total of 319 complaints outstanding electricity bills, leaving the debts to the owner
or 95.5% had been resolved and 15 complaints are under of the premise, who is the registered user. TNBs delay in
investigation. In 2010, there was an increase in the number disconnecting the supply have caused for outstanding
of complaints relating to electricity bills, metering, supply bills of up to thousands of ringgit. One of the initiatives to
disconnection and reconnection issues. One of the reasons solve this problem is to send reminders via short message
for the drastic increase was the decision made by TNB to service (SMS) to the owners of the account with outstanding
read meters once in every 2 months, with estimated bills bills. In addition, property owners could also monitor their
issued in between. The change initiated by TNB caused tenants electricity bill through e-services available on the
confusion among the public and this matter was raised in TNB website. TNB will also disconnect supply via the feeder
Parliament and the local papers. pillar, posts and nearby premises. For premises that could
not be accessed to disconnect supply, TNB has been asked
Consequently, a series of discussions and dialogue with to obtain a court order to enter.
TNB were organised to determine the real reason for the
confusion and discuss the measures taken by TNB. After ST also have make revisions on customer complaints with the
studying the matter, it was found that several issues listed utility company in relations to electricity charges. Among
below caused confusion and dissatisfaction among the the complaints received include:
public:
I. Connection load charges;
Confusion about the calculation of the current bill; II. Special industry tariffs (SIT) and power quality
Calculation of higher estimate bil; and disruptions;
Calculation of the RM20 monthly rebate. III. Change from medium voltage industry tariff to
medium voltage commercial tariff; and
TNBs delay in disconnecting overdue accounts was another IV. Additional bills that were backdated
major issue that caused problems to consumers in 2010.
ENERGY COMMISSION 2010 ANNUAL REPORT | 103
To address these issues, TNB took several steps to clear up viii. Introducing facilities for the OPC to conduct Self
the public confusion: Among the steps taken were to: Meter Reading (SMR). The initiative is implemented
by card (mailed to TNB), via the Internet or SMS to
i. Implementing a new method of calculating electricity the TNB station; and
bills for ordinary power consumers, i.e. the electricity ix. Holding regular meetings with Pos Malaysia Berhad
bills will be calculated based on actual usage if the to address issues raised such as late electricity bills,
billing period is the same or less than the number of non-receipt of electricity bills and correcting wrong
days in a month; addresses.
ii. Implementing a new method of calculating estimated
bills, i.e. the lower of the average consumption from Complaints regarding these issues have declined which
the previous six months and the consumption of the indicates the effectiveness of actions that have been taken.
previous month;
iii. Appealing to the Ministry of Finance to approve a A total of 420 complaints were received, indicating a 9%
new method of providing the government rebate of increase from 382 complaints in the previous year. 79% or
RM20.00 for consumers who receive estimated bills; 334 complaints were related to electrical supply services and
iv. Briefing the Public Complaints Bureau on the quality. Other complaints were about electrical appliances,
implementation of estimated bills and the method electrical installations, electrical contractors and electrical
of calculating them; competency that accounted 21% or 86 complaints of the
v. Briefing Members of Parliament who raised the issue total complaints.
of estimated bill implementation;
vi. Using a new bill layout for ordinary power consumer The number of complaints on the supply and quality of
(OPC) in stages; electricity declined by 3.5% compared to 2009. Meanwhile,
vii. Publishing an advertorial on Understanding Your complaints in other categories increased 58% to 86,
Electricity Bill in 14 major Bahasa Malaysia, English, compared to 36 complaints in 2009.
Chinese and Tamil dailies;
bi-monthly bills
connection load charges in Putrajaya and Cyberjaya
electricity supply disruption
power factor incentive
electricity theft
supply disconnection due to outstanding electricity
bills
guaranteed service level and minimum service level
104 | ENERGY COMMISSION 2010 ANNUAL REPORT
Compared to previous years, ST was more involved in TALKS, SEMINARS AND DIALOGUES
activities to raise public awareness in 2010. It participated
in 20 exhibitions throughout Malaysia, especially in 3 areas: As part of its effort to provide information, suggestions
and feedback on policies, rules, standards, practices and
a) Electrical Safety domestic and global related issues involving the electricity
b) Piped Gas Safety industry, regional offices organised a series of talks,
c) Energy Efficiency dialogues and seminars for members of the public and
parties directly involved in the electricity supply industry.
A series of talks, seminars, dialogues and campaigns were
held with various electricity industry activists or consumer Some of these activities were organised in collaboration
groups. They included: with local associations and authorities. The following are
statistics on the talks and dialogues held:
Licensees such as Tenaga Nasional Berhad
Industry / Commercial Groups
Members of the Public / Educational Institutions / ST Office Seminar Dialogue
Schools Petaling Jaya 3 7
Government Agencies / Local Authorities
Malacca 10 5
Theme Parks / Fun Fair / Construction Site
Electrical Appliance Distributors Johor Baru 3 2
Associations representing Contractors, Consultants Ipoh 6 12
and Other Parties Kota Baharu 11 13
Kuantan 11 3
Butterworth 10 2
Kota Kinabalu 5 11
Sandakan 10 1
In conjunction with the National Consumer Month Total 69 56
Campaign 2010 held by MDTCC, ST organised an
electrical safety exhibition. SEMINAR ON ELECTRICAL SAFETY
AWARENESS (SESA) 2010
PROGRAMMES TO PROMOTE ST
PUBLIC ANNOUNCEMENTS
The STs involvement in raising awareness on issues relating
to electricity supply indirectly informed people of its function In addition to image building and delivering the message that
and roles. It is hoped that this will encourage the public to the Government intends to reduce subsidy, the ST also used
refer to ST pertaining to any problems on the quality of the media to help disseminate messages on enforcement.
supply and safety of electricity. During the Hari Raya Aidilfitri celebrations from August 30
to September 3, 2010, its public notifications related to
The STs role also includes promoting green technology and distributors and sellers of electrical appliances that do not
energy efficiency in office buildings. One of its initiatives is carry the ST-SIRIM label. These were published in eight local
the support of the Touchpoint programme, undertaken Malay, English, Mandarin and Tamil newspapers.
with the Minister of Energy, Green Technology and Water, to
promote electrical safety and energy efficiency to the local As a result of the publicity, the ST received information and
community. complaints from members of the public who wanted to play
their part in eradicating the sale of uncertified electrical
Furthermore, 13 Programmes with TNB Community Leaders appliances in the market. The information was used as input
have been held to share information about the importance by ST to take appropriate actions and prosecute offenders.
of electrical safety and the efficient use of electricity; also
to understand the problems faced by the local community
with regard to electricity supply through dialogues between
community leaders and ST.
To increase public awareness of current issues under STs regulations, public service announcements on electrical safety and
energy efficiency has continuously being promoted in 2010. It is hoped that the initiatives would help enhance electrical safety
practices and promote energy efficiency among the wider viewing audience. To achieve this objective, ST aired 238 public
service announcements in Radio Televisyen Malaysia (RTM) (TV1 and TV2) and Media Prima (TV3, NTV7, TV9). The following is
the breakdown of announcements for both television networks:
Public service announcements through the mass media is APPEARANCE IN TELEVISION TALK
also part of the KeTTHA Communications Plan, in line with
SHOWS
the Governments goal of increasing public awareness of its
subsidy reduction programme that will be implemented in
During the year under review, ST took part in talk shows
stages.
to highlight issues related to electricity and gas safety,
and energy efficiency to increase public and consumer
Public service videos on electrical safety and energy
awareness. Among the talk shows involving ST in 2010
efficiency were also uploaded on STs website for viewing
include:
and downloads. It can be used for programmes organised
by schools, educational institutions, factories and private
companies.
Live interview with En. Abdul Rahim Bin Ibrahim, Director, Department of Electrical
7 September Malaysia Hari Ini on TV3 Safety, on electrical safety measures during the festive season.
Live interview with En. Yusni Bin Sharif, Head of the Gas Safety Unit, Department
Selamat Pagi Malaysia on of Gas Safety and Supply, on the safe consumption of piped gas.
29 September
TV1
Live interview with Ir. Francis Xavier Jacob, Director, Department of Energy
Management and Industrial Development, ST, on efficient electricity consumption
1 November Wanita Hari Ini on TV3 by choosing electrical products with the energy efficiency label (STAR Rating).
Live interview with En. Abdul Rahim Bin Ibrahim, Director, Department of Electrical
20 November Nasi Lemak Kopi O on TV9 Safety, ST, on electrical safety measures during the flooding season.
ENERGY COMMISSION 2010 ANNUAL REPORT | 107
For a rapidly developing country like Malaysia which is on The source of reference that is often cited by energy
its way to becoming a developed nation, the demand for analysts is the National Energy Balance (NEB) Report
energy is expected to rise annually to fulfil the needs of published by the Ministry of Energy, Green Technology
expanding industries. Electricity generation in Malaysia is and Water (KeTTHA). The NEB report for 2009 and earlier
highly dependent on fossil fuels such as natural gas, coal, years published by KeTTHA was prepared by the Malaysian
diesel and oil. Based on statistics, only 13% of the energy Energy Centre (MEC), now known as the Malaysian Green
produced are from renewable energy sources such as Technology Corporation (GreenTech Malaysia). However,
hydro, biomass and solar. However, in reality, fossil fuels are due to the changes in the functional structure that took place
finite natural resources and would one dayl be completely at GreenTech, KeTTHA has given mandate to the Energy
depleted. Thus, good and efficient energy management has Commission to prepare NEB Report from 2010 onwards.
to be put in place to ensure sufficient fuel to fulfil energy
demands for the long term. The process of taking over the preparation of NEB was
done step by step and the first meeting with KeTTHA
Detailed, complete, accurate and updated energy statistics and GreenTech was held on October 1, 2010. Among the
are vital for a developed nation to enable it to monitor important issues discussed was the handover of NEB tasks
the energy situation and facilitate proper future energy involving the relocation of the MEDIS (Malaysia Energy Data
planning and policy decisions. Realising its importance, ST Information System) server. MEDIS is a software used in the
established a new unit, i.e. the Energy Information Unit, preparation of NEB and EIB (Energy Information Bureau)
in the middle of 2009 which is responsible for collecting, reports. The physical handover of both tasks were planned
storing and providing information on all the countrys for early 2011.
energy data. The establishment of this unit is in line with the
governments aspiration and aim of turning the ST into the The NEB report covers comprehensive statistical data
national energy database centre. including crude oil, natural gas, petroleum products,
coal and electricity. Sources of energy are categorised by
IMPROVEMENT IN THE ST ENERGY manufacturing, transformation and final demand which
includes demand from households, commercial transport,
DATABASE SYSTEM
industry, agricultural and non-energy sectors. The report is
the main source of reference for analysts, policy makers, and
In 2010, the ST took steps to upgrade the current database
local and overseas students. As the Energy Information Unit
system by appointing consultants to develop a more
(EIU) is responsible for NEB data, indirectly, all deliveries and
comprehensive on-line system. The integrated system to
distribution at the international level must go through this
be developed includes a more interactive energy database
Unit. Among the international organisations involved are the
management application where the data provider can
International Energy Agency (IEA), United Nations Statistics
provide online data to be processed and used in the
Division (UNSD), Asia Pacific Economic Cooperation (APEC)
Energy Balance Report, Statistics Report and Electrical
and ASEAN Centre for Energy (ACE).
Industry Report and for economic analysis such as energy
projections, energy demand and supply forecasts and other
energy related studies. The online database system will
be accessible by the public from within the country and
overseas for the latest energy information.
ENERGY COMMISSION 2010 ANNUAL REPORT | 111
b) regulatory bodies in member countries should Subsequently, ST took the necessary steps to comply with
give accreditation to an organisation to carry the AHEEERR agreement by proposing amendments to the
out testing on equipment to be known as the Electricity Regulations 1994.
Conformity Assessment Body (CAB). CAB shall
issue the Certificate of Conformity (CoC) to EEE
manufacturers. With regard to this, ST has accredited
SIRIM as Malaysias CAB.
One important initiative which has been agreed, and The concept produces a more stable quarterly ACP when
obtained the approval of ST is the new mechanism to set all coal required in Peninsular Malaysia were collated and
the Applicable Coal Price (ACP) used by TNB, TNB Fuel classified either as bituminous and sub-bituminous coal. The
Services (TFS) and coal power plants in Peninsular Malaysia weighted average process for each plant is then determined
for the purpose of scheduling and dispatch, coal acquisition based on the classification ratio formalised in the Power
and payment of energy cost. Prior to this, the ACP is specific Purchase Agreement (PPA). Generally, the concept ensures
to each coal power plant based on the coal supply contract that sub-bituminous coal plants are given the highest merit
signed between TFS and the supplier. The mechanism level and bituminous coal placed at the lowest merit level
created a situation in which ACP always fluctuates, making while stations with a mix of sub-bituminous and bituminous
it harder for all parties to predict the stock of coal and coal will be in between the level of bituminous and sub-
the scheduling and dispatch of coal generation units. bituminous coal plants.
To address this problem, TNB and TFS have proposed
a new mechanism using the concept of common ACP.
As a follow up to the study on Electricity and Gas Tariff The IBR concept will promote changes in the review
Structure in Peninsular Malaysia and Sabah, ST introduced and determination of electricity and gas tariffs. It will
the concept of Incentive Based Regulation (IBR) to enhance transparency in the decision making process by
determine electricity and piped gas tariffs with the intention the Government through a well-defined mechanism and
of strengthening the effective role of economic regulation. guidelines. With this mechanism, utilities and consumers
One of the important outputs of the study is the preparation would be more prepared and have a better understanding
of eleven Regulation Implementation Guidelines for the of tariff adjustments.
electricity supply and piped gas sectors. During the study, a
series of training course were conducted while consultations
between stakeholders and ST were also held.
ENERGY COMMISSION 2010 ANNUAL REPORT | 115
Automatic shutters
The atrium design atrium allows natural light to be fully utilised for ST Diamond Building office
space. The dome is equipped with automatic shutters that has six configuration to ensure that
appropriate lighting levels at all times.
The Energy Commission Act 2001 [Act 610] was amended STRENGTHENING FINANCIAL CONTROLS
and became effective from February 11, 2010. Among the
OF THE COMMISSION
amendments made to the Act are:
ORGANISATIONAL RESTRUCTURING
On October 14, 2010, the Minister of Energy, Green c. grade adjustments for the position of Department
Technology and Water approved the restructuring of ST Director, with the position of Director (Electricity
involving a revamp of the organisational chart to ensure that Supply) upgraded from Grade 7 to Grade 8.
all of STs functions stipulated in the ST Act could be fully
implemented. The organisational restructuring saw the number of
employees growing by 30% to strengthen STs operations
The restructuring involved: with the addition of 68 new positions (57 Executives and 11
Non-Executives) at the Head Office and Regional Offices.
a. eliminating the position of Chief Operating Officer
(COO) to create a flatter structure so that the Total staff intake for 2010 was:
communication process among departments and
top management would be more effective; a. Executive: 12
b. Support Group: 2
b. enhancing the role and function of Departments
to improve the safety of electricity and piped The recruitment of executive level employees include
gas supply, complaints management, database candidates who have extensive experience in the energy
management and procurement; and industry to strengthen the regulatory functions of ST.
COMPETENCY DEVELOPMENT
DEVELOPING STS WEBSITE Applications via the e-Permit system can be made online
from any where and at any time. The applicant must enter
STS new official website www.st.gov.my was launched on all application data which is normally done by an ST officer.
August 2, 2010. The content structure of the new website With the implementation of the system, the approval
was improved to enable visitors to obtain information process can be shortened from 14 to 5 days.
related to competent persons, contractors, equipment,
installations, energy efficiency and other matters such as In July 2010, ST together with Dagang Net Technologies Sdn
application procedures for services handled by ST and also a Bhd held a series of five seminars to inform manufacturers
list of institutions accredited by ST. In addition, information and importers about applications via the e-Permit system.
on the Grid Code and energy related content could also be Feedback was obtained from the participants and the ST
obtained from this website. responded accordingly and took the necessary action.
ST also provides various online services that could be The e-Permit development project was launched on October
conveniently accessed from its website such as OLRC, 2009 and completed in June 2010. The online system was
E-Permit, My Bayar and E-aduan to enable the public to first used on September 1, 2010, when applications were
make applications, check the status of their applications and received online and manually during a transition period
submit complaints on the problems that they face. and became fully operational and integrated with SMK on
October 1, 2010. Since commencing its online operations, a
total of 2,093 applications has been received.
E-PERMIT
Activities such as campaigns, dialogues and briefings on
In line with the National Single Window (NSW) policy, the
how to apply for certificates of approval and release letters
Government wants all permit applications from issuing
via the e-Permit system for manufacturers and importers
agencies to be made online through the e-Permit module
of electrical equipment were organised in collaboration
system developed by Dagang Net Technologies Sdn Bhd
with Dagangnet and ST regional offices in Petaling Jaya,
under the supervision of the Ministry of Finance. At the ST
Butterworth and Johor Bahru. A dialogue with TEEAM on
level, the e-Appliance system will be integrated with the
the e-Permit system was held on December 1, 2010 at STs
e-Permit system.
main office.
ONLINE REGISTRATION OF
CONTRACTORS (OLRC)
Each complaint made via the e-Aduan system is analysed to Complaints Received from 2008 2010
identify the issue. Complaints requiring further investigation
No. of complaints
is submitted directly to the nearest regional office. ST
400
officers will conduct investigations as soon as possible 346 334
350 312
and take the appropriate action. The response time set in
300
the Client Charter is 15 days. Meanwhile, for complaints 250
requiring further action and investigation, the response time 200
is within 30 days unless more time is required to investigate 150
the case. 100 86
22 36
50
0
2008 2009 2010
Year
MOVING FORWARD
ST TRANSFORMATION PLAN
During the Management Workshop held in 2010, ST developed a Transformation Plan that set the direction of the organisation
till 2020. The plan consists of three sub-plans:
All three plans were developed with the objective of achieving key results as listed below:
DELIVERABLES
Energy Market
The energy supply industry markets are highly progressive, competitive and resilient.
Industry Players
All parties/players involved in the energy supply industry play their roles and operate in
an orderly and well-controlled manner; constantly in a high state of readiness; and with
the highest standard of professionalism.
Government
The Government, in general, and the Minister, in particular, are constantly in a high state
of being advised on all matters pertaining to the running of energy supply industry and
to situations regarding the availability and requirements for energy in Malaysia.
ENERGY COMMISSION 2010 ANNUAL REPORT | 123
2016 2020
- 2019 Operationalisation
of Liberalised
2015
Market
Enactment of
Competition
2014
Regulations
Implementation of
IBR (Electricity) Establishedment
2013
of Electricity
Market Operator
Implementation of
competitive
Formulation of
2012
bidding and
Market Rules
Open Access of expansion plan by
Gas Network SB
2010
Regulatory
Development of Monitoring
Regulation
Enhancement Plan Issuance of RIGs
Competitive
Bidding Industry Award Ring-fenced
Programme Function of GSO
Account and SB
Unbundling Energy Database
Commence
Technical and Performance Outsourcing of
Finance Regulation Selected Activities
Benchmarking
Activity-based Operationalisation
Fuel Supply Licensing of a more
Security (G, T, D, R) Transparent
Managed Market
Generation Fuel Pricing
Development Plan Implementation of
Implementation of New Safety
Tariff Analysis New ACP Regime
Mechanism
Transparency in Establish
Dispatching Development of Collaborative
Industry Codes of Framework with
Practice and Other Relevant
Distribution Agencies,
Guidelines Associations and
Institutions in
Enforcement of Regulatory
Grid and Activities
Distribution
Codes
124 | ENERGY COMMISSION 2010 ANNUAL REPORT
1. Competency Examination
2. Approval of Electrical Equipment
3. Capacity Planning
4. Competitive Bidding
5. ATI and ATO Processing (GMSB)
6. Promotional Activities
7. EE/RE Incentive Processing (SEDA)
8. RE Activities (SEDA)
9. Accident Investigation (DOSH)
10. Fire Investigation (BOMBA)
11. Electricity and Gas Theft (PDRM)
12. EE Labeling Approval (SIRIM)
13. Contractor Registration (CIDB)
14. Registration of Installations
2014-2015
2013 Review of Terms and
2012 Establishment of EC
Conditions of Services
Review of Organisational
2011 Enhancement of ICT
infrastructure for HQ-Regional
Training Centres
Structure and manpower
Requirements
Talent Management and Office communications
Development Plan
Payroll Outsourcing
Reallocation of manpower
based on priority Recruitment Outsourcing
Rationalization of HQ and
Regional Office functions
Implementation of online
Performance Management
system
LAPORAN
ENERGY
TAHUNAN
COMMISSION
2010 SURUHANJAYA
2010 ANNUALTENAGA
REPORT | 125
Water Efficiency
Rainwater is collected from the crown of the dome roof where it is channeled to a rainwater
tank. The rainwater collected is used for toilet flushing and irrigation of the landscape on the
roof and ground floor of the ST Diamond Building.
I have audited the financial statements of Energy Commission for the year ended
31 December 2010. These financial statements are the responsibility of the
management. My responsibility is to audit and to express an opinion on these
financial statements.
The audit has been carried out in accordance with the Audit Act 1957 and in
conformity with approved standards on auditing. Those standards require an
audit to be planned and performed to obtain reasonable assurance that the
financial statements are free of material misstatement or omission. The audit
includes examining records on a sampling basis, evidence supporting the amounts
and disclosures in the financial statements. It also includes assessment of the
accounting principles used, significant estimates made by the management as well
as evaluating the overall presentation of the financial statements. I believe the
audit conducted provides a reasonable basis for my opinion.
In my opinion, the financial statements give a true and fair view of the financial
position of the Energy Commission as at 31 December 2010, the results of its
operations and the cash flows for the said year in accordance with the approved
accounting standards.
PUTRAJAYA
JULY 7, 2011
ENERGY COMMISSION 2010 ANNUAL REPORT | 127
I, Ir. Ahmad Fauzi Bin Hasan, Chief Executive Officer primarily responsible for the financial management of the Energy
Commission, do solemnly and sincerely declare that the Financial Statements comprising of the Balance Sheet, Statement of
Income and Expenditure, Statement of Accumulated Funds and Statement of Cash Flows and notes to the Financial Statements,
are to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to
be true and by virtue of the provisions of the Statutory Declaration Act, 1960.
...
Before me,
..
128 | ENERGY COMMISSION 2010 ANNUAL REPORT
We, Tan Sri Datuk Dr. Ahmad Tajuddin Bin Ali and Datuk Ir. (Dr.) Abdul Rahim Bin Haji Hashim, being the Chairman and a
Member of Energy Commission respectively, do hereby state that in the opinion of the Members of the Energy Commission,
the following Financial Statements comprising of the Balance Sheet, Statement of Income and Expenditure, Statement of
Accumulated Funds and Statement of Cash Flows and the notes to the Financial Accounts have been properly drawn up to give
a true and fair view of the state of affairs of Energy Commission as at 31 December 2010 and of the result of operations and
changes in financial position for the year then ended on that date.
.......................................................................
Tan Sri Datuk Dr. Ahmad Tajuddin Bin Ali ................
Chairman Datuk Ir. (Dr.) Abdul Rahim Bin Haji Hashim
Anggota
Date : JUNE 14, 2011
Date : JUNE 14, 2011
Olace : Energy Commission
Precinct 2, Putrajaya Olace : Energy Commission
Precinct 2, Putrajaya
ENERGY COMMISSION 2010 ANNUAL REPORT | 129
BALANCE SHEET
As at 31 December 2010
RM RM
Current Assets
161,104,257 154,778,938
Current Liabilities
5,555,073 6,529,731
248,899,018 228,469,784
Financed by :-
RM RM
Revenue
64,140,920 64,312,337
Less: Expenditure
42,744,743 35,193,592
The Energy Commission has no profit and loss besides surplus of net income for the current financial year.
ENERGY COMMISSION 2010 ANNUAL REPORT | 131
2010 2009
RM RM
2010 2009
RM RM
Cash and cash equivalents at the end of the year 158,900,654 153,856,835
158,900,654 153,856,835
ENERGY COMMISSION 2010 ANNUAL REPORT | 133
1. Principal Activities
The Commission is a statutory body operating at No.12, Jalan Tun Hussein Onn, Precinct 2, 62100 Putrajaya.
The Energy Commission is the sole regulatory agency for the monitoring and development of regulate and develop
the energy sector. The Energy Commission is directly responsible for supervising and monitoring energy generation
activities, which includes regulating each licensed individual under the Energy Commission Act 2001.
The following accounting policies were adopted by the Energy Commission and are consistent those with policies
adopted in the previous year.
The financial statements were prepared under the historical cost convention and comply with approved
accounting standards for private entities in Malaysia.
(b) Property, fittings and equipment
Property, fittings and equipment are stated at cost, less accumulated depreciation and impairment, if any.
Depreciation
Depreciation of property, fittings and equipment are depreciated on a straight line basis on the estimated useful
life of the asset. Property, fittings and equipment under construction are not depreciated until the construction
had been completed.
(c) Receivables
Receivables are stated at cost.
Cash and cash equivalents comprise of cash, bank balances and deposits, which have an insignificant risk of
changes in value.
(e) Payables
(f) Impairment
The carrying amount for the Energy Commissions assets and financial assets are reviewed at each balance sheet
date to determine whether there is any indication of impairment. If any such indication exist, the recoverable
amount is estimated. An impairment loss is recognised whenever the carrying amount of an assets or the cash-
generating unit to which it belongs exceeds its recoverable amount. Impairment losses are recognised in the
income statement unless the asset is carried at a revalue amounts in which case the impairment loss is charged
to equity.
Recoverable amount is the greater of the assets net selling price and its value in use. In assesing value in use,
estimated future cash flows are discounted to the present value using a pre-tax discount rate that reflects current
market assessment of the time value of money and the risks to the asset. For an asset that does not generate
largely independent cash flows, the recoverable amount is determined for the cash-generating unit to which the
asset belongs.
In respect of other assets, an impairment loss is reversed if there has been a change in the estimates used to
determine the recoverable amount.
An impairment loss is reversed only to the extent that the assets carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been
recognised. The reversal is recognised in the income statement, unless it reverses and impairment loss on to a
revalue asset, in which case it is taken to equity.
Tax on the income statement for the year comprises current and deferred tax. Income tax is recognised in the
income statement except to the extent that is relates to items recognised directly in equity, in which case it is
recognised in equity.
Current tax expenses is the expected tax payable on taxable income for the current year, using tax rates enacted
or substantially enacted at the balance sheet date, and any adjustment to tax payable in respect of previous
years.
Deferred tax is provided, using the liability method, on temporary differences araising between the tax rate
bases of assets and liabilities and their carrying amounts in the financial statements. Temporary differences are
not recognised for goodwill not deductible for tax purposes, and the initial recognition of assets or liabilities
that at the time of transaction, affects either accounting nor taxable profit. The amount deferred tax provided is
based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using
tax rate enacted or substantially enacted at the balance sheet date.
A deferred tax asset is recognised only to the extent that is probable that future taxable profits will be available
against which the asset can be utilised.
ENERGY COMMISSION 2010 ANNUAL REPORT | 135
Wages, salaries and bonuses are recognised as an expense in the year in which the associated services are
rendered by the employees of the Energy Commission. Short term accumulating compensated absences such
as paid annual leave are recognised when service are rendered by employees that increases their entitlement for
future compensated absenses, and short term non-accumulating compensated absences such as sick leave are
recognised when the leave occur.
According to the law, qualified employers in Malaysia are obliged to contribute Employee Provident Fund. The
contributions are recognised as expenses in the income statement. Liability for the fixed contribution plan is
recognised as current expenses in the income statement.
All expenses are calculated on accrual basis. Income from fees and charges are calculated on cash basis which are
considered cash in view of license holders responsibilities to make annual payments. Interest income received
also recognised on accrual basis.
136 | ENERGY COMMISSION 2010 ANNUAL REPORT
Furniture, Application
Motor Fittings and Office Systems and Work in
Vehicles Renovations Equipment Computer Progress Total
Cost RM RM RM RM RM RM
Accumulated Depreciation
Furniture, Application
Motor Fittings and Office Systems and Work in
Vehicles Renovations Equipment Computer Progress Total
Cost RM RM RM RM RM RM
Accumulated Depreciation
4. Other Receivables
2010 2009
RM RM
2010 2009
RM RM
6. Other Payables
2010 2009
RM RM
Other Payables
7. Taxation
2010 2009
RM RM
Tax Expenses
The Energy Commission has obtained tax exemption under Section 127(3)b, Income Tax Act 1967, which was given by
the Ministry of Finance on October 19, 2004. The exemption applies on statutory income as follows:
i. Income received from Federal Government or State Government in the forms of grant or subsidies;
ii. Income received in connection with any amount chargeable or collectible from any body or person under the Act,
which governs statutory bodies; and
8. Staff Costs
Included in the staff cost is contribution to the Employees Provident Fund of RM2,031,616 ( 2009 RM1,721,673). The
number of employees of the Energy Commission at end of the year was 229 (2009 221 ).
140 | ENERGY COMMISSION 2010 ANNUAL REPORT
The following comparative figures discloses were restated in the Financial Statements for the financial year ended 31
December 2010 and reclassification of prior years comparatives to conform with current year presentation :
Investments - 91,000
Other Receivables 922,103 281,339
Cash and Cash Equivalents 153,856,835 154,406,599
Net Current Assets 148,249,207 148,158,207
154,778,938 154,778,938