Oh, I can see this news article causing a look of disbelief on people’s faces. Maybe I should get the IEM to give a talk on the topic, so I can capture peoples’ expressions on my trusty Canon A-1.
Dateline 2010-07-21, taken from Bernama:
The Association of Independent Power Producers in Malaysia (Penjanabebas) on Wednesday said it is unfair to portray its members as beneficiaries of gas subsidy.
It said the cost of gas as a fuel to generate electricity is a component that the IPP industry does not derive any financial benefit from but instead, the savings from gas subsidy is passed on to consumers through the tariffs.
“Under the Malaysian IPP model – in line with the international norm in power purchase agreements – gas costs operate under a “pass” through” mechanism, whereby all gas supplies are provided directly to gas-fired generators at cost determined by the government.
