Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui (centre) at a press conference held at his ministry in Putrajaya yesterday. With him are Petronas senior manager Abd Razak Saim (left) and Tenaga chief operating officer and executive director Datuk Azman Mohamad.
The Energy, Green Technology and Water Ministry has slammed as inaccurate and misleading allegations of gas subsidies benefiting independent power producers and Tenaga Nasional Bhd.
Minister Datuk Seri Peter Chin Fah Kui said he was worried that opposition members of parliament were "unable to grasp simple concepts such as subsidies" and so chose to misrepresent details for political mileage.
Asked if he was going to approach opposition MPs to clarify the issue, he said he had exhausted every avenue to explain the matter, including in Parliament.
"It would not be easy to convince them as they have their own point of view. I'm pretty sure they will raise the issue during the budget presentation. I am expecting this."
Chin said the government-controlled gas prices to the power sector subsidised all segments of electricity consumers, not just IPPs or TNB.
He said, short of releasing the power purchase agreements, the government would be as open as possible on the matter.
Chin also said one could not compare the tariffs found in other countries as operational costs would differ due to the resources, such as coal, found in a particular country.
As of June 1, the average electricity tariff rose to 33.54 sen per kilowatt from 31.31 sen, in tandem with the rise in gas prices.
It was claimed that Singaporeans paid 57.5 sen per kilowatt.
"The tariff is not based on gas prices only, although it does play a role in influencing the rates," Chin said.
It was previously claimed by the opposition that IPPs enjoyed gas subsidies amounting to RM19 billion annually from the government.
Chin had earlier said that the sum was the profit Petronas had to forgo for having to sell gas below the market price to the IPPs and TNB.
