Can not get renew??? Extra power sell to who???
Will YTL and YTLpower share affected tomorrow???
YTL no longer supplies power to grid after Tenaga PPA's expiry
By Cynthia Blemin / theedgemarkets.com | October 5, 2015 : 4:43 PM MYT
KUALA LUMPUR, (Oct 5): Tenaga Nasional Bhd ( Valuation: 1.80, Fundamental: 1.30) announced today that YTL Power ( Valuation: 1.40, Fundamental: 1.50) Generation Sdn Bhd (YTL) was no longer exporting electricity to the grid, after both companies' power purchase agreement (PPA) expired last Wednesday (Sept 30).
Tenaga said in a statement today that the PPA was signed on March 31, 1993.
"With the expiry, YTL no longer exports power to the Grid effective from Oct 1, 2015.
Concurrently, a Leasing Agreement which YTL entered into with TNB to lease the latter's land in Paka, Terengganu and Pasir Gudang, Johor to build its power stations, was also affected.
"For the record, the PPA was the first PPA signed between TNB and an Independent Power Producer (IPP), and the only PPA that was based on Take-or-Pay mechanism for a period of 21 years," Tenaga said.
Tenaga's statement confirms The Edge Financial Daily's (The Edge FD) report last Wednesday (Sept 30). The Edge FD, quoting Energy Commission's chairman Datuk Abdul Razak Abdul Majid, reported that the commission had yet to renew YTL Power's PPAs for Paka, Terengganu and Pasir Gudang, Johor.
This was because YTL Power had to fulfill certain conditions, before the renewal was granted, The Edge FD reported.
Today, Tenaga said total capacity at the Paka power station was 780 megawatt (MW), consisting of two power plants of 390MW each.
At Pasir Gudang, Tenaga said the power plant had a capacity of 390MW.
YTL Power's shares traded flat at RM1.52 at 4:13pm, for a market capitalisation of RM10.72 billion.
At 4:15pm, Tenaga rose four sen or 0.3% to RM12.10, for a market value of RM68.24 billion.