Distribution
The Distribution Division comprises TNB Distribution Sdn Bhd, Tenaga SPL Sdn Bhd
(TSPL) and TNB Metering Services Sdn Bhd (TNBM).
DISTRIBUTION SYSTEM MAINTENANCE A major and enabling strategic initiative undertaken during the financial year has been the further development of condition-based maintenance for critical components of the distribution system, namely switchgears and cables.
Ultrasound detection, thermographic scanning and very low frequency (VLF) testing technologies are being deployed to effectively identify potential sources of failure of system components.
The shift towards these new methodologies is driven by the need to improve overall effectiveness of maintenance practices in terms of equipment availability and cost optimisation associated to system maintenance.
Initial results have proven effective, whereby service failures due to sub-station equipment and medium voltage cables have shown a reduction of 22.7% and 16.6% respectively.
The long-term objective of the programme is the complete migration into reliability-centred maintenance. The benefits of the overall programme are: •improved service level of the distribution system; • optimisation of maintenance expenditures; • optimisation of asset utilisation; and • enhanced revenue.
TNB Corporate Report 2002 96
SYSTEM RELIABILITY FIGURE 1: SUMMARY OF DISTRIBUTION SYSTEM RELIABILITY On the overall distribution system, reliability performance showed a PERFORMANCE marked improvement of 49.5% in SAIDI (System Average Interruption Financial Financial Financial Duration Index). SAIDI for Financial Year 2001/2002 was 129.72 Reliability Year Year Year customer-minutes as compared to 257.06 minutes recorded Performance Indicator 1999/2000 2000/2001 2001/2002 previously. Figure 1 indicates SAIDI contribution from faults and SAIDI contribution scheduled outage (maintenance). due to faults 259 197 116
The overall improvement in SAIDI performance was achieved through SAIDI contribution due to scheduled effective institutionalisation of improved work practices, methodologies outage (maintenance) 60 60.06 13.72 and standards across key functional areas of system planning and design, equipment specification and design, project construction and Distribution SAIDI 319 257.06 129.72 management, system operations and system maintenance.
“The RealRewards programme was introduced to encourage early payment, to reduce TNB operating costs and to enhance customer loyalty.”
ELECTRICITY SALES AND REVENUE The total electricity sales recorded for the period of 1 September 2001 to 31 August 2002 shows a marginal increase of 4.5% (from 57,437,013,293kWh to 60,034,754,106) as compared to last year’s with an increase of 5.87%.
The sales by segment are shown below:
FINANCIAL YEAR 2001/2002* Units (kWh) % Increase Revenue (RM) % Increase
Domestic 10,939,384,283 9.2% 2,548,691,118 9.7%
Commercial 17,031,710,171 7.7% 4,734,501,247 7.7%
Industrial 31,370,508,226 1.3% 6,708,697,167 1.1%
Mining 64,000,596 0.5% 9,201,526 1.1%
Public Lighting 629,150,830 8.4% 96,050,598 5.5%
Total 60,034,754,106 4.5% 14,097,141,656 4.8%
* for Peninsular Malaysia only.
Unit sales for Financial Year 2001/2002 were 60,034,754,106kWh and the revenue generated from sales of electricity was RM14,097,141,656. Unit sales have shown an increase of 4.5%, with revenue having increased by 4.8% compared to the previous year of 5.87% and 5.51% respectively. The domestic sector has recorded the highest percentage increase in sales of 9.2% compared to the commercial sector 7.7% and industrial sector 1.3%. Public lighting recorded an increase of 8.4% and mining 0.5%. TNB Corporate Report 2002 97
The RealRewards programme was introduced in April 2002 with the TOTAL NO. OF REGISTERED CUSTOMERS* as at August 2002 following objectives: •To encourage early payment of electricity bills by customers % (within 15 days) 4,569,628 83.4 Domestic •To reduce TNB operating costs by encouraging customers to pay Commercial 862,826 15.7 through Kedai Tenaga or Direct Debit Public Lighting 27,793 0.5 •To enhance customer loyalty Mining 45 0.001 Industrial 21,382 0.4 This programme is only offered to Ordinary Power Customers (OPC) from the domestic and commercial sectors. Members will be credited RealRewards points for expeditious bill payment within 15 days and awarded double points for payment made at Kedai Tenaga (domestic Total = 5,481,674 customers customers only).
For Domestic Customer under Tariff Code of 012, 013, 014, 017 and * for Peninsular Malaysia only. 023. • Get 2 RealPoints for every RM5 bill payment through Direct Debit CUSTOMERS PER EMPLOYEE* Facility. 2001 2002 • Get 2 RealPoints for every RM10 bill payment at Kedai Tenaga. • Get 1 RealPoint for every RM10 bill payment for other payment Total no. of employees 14,005 14,558 channels.
Productivity Ratio (customer per employee) 373 389 For Commercial Customer under Tariff Code of 016, 018, 020, 021, 022, 024 and 030. * for Peninsular Malaysia only. • Get 1 RealPoint for every RM10 bill payment at Kedai Tenaga and at all other payment channels and modes. UNIT SALES (GWH) PER EMPLOYEE* 2001 2002
4.1 4.26
* for Peninsular Malaysia only.
RURAL ELECTRIFICATION PROGRAMME* 2001/2002 Total
Villages Connected 178 16,357
Customers Connected 2,705 1,042,340
* for Peninsular Malaysia only.
CUSTOMER SERVICES RealRewards Programme RealRewards is an electronic customer loyalty programme operated by Electronic Commerce Technology Sdn Bhd. TNB is one of the participating merchants under the RealRewards programme. TNB Corporate Report 2002 98
RENEWABLE ENERGY TARIFF On 16 October 2001, TNB entered into two PPAs with the developers As a result of consultation and focus group dialogue with Large of power generation projects utilising Renewable Energy (RE) sources Power Customers, The Federation of Malaysian Manufacturers (FMM), under the Small Renewable Energy Power Programme (SREP). and the Ministry of Energy, Communication & Multimedia, TNB The SREP Programme was launched by the Ministry of Energy, introduced two new innovative tariff packages to stimulate growth, Communication and Multimedia in May 2001 as part of the improve efficiency and customer service for the industrial and government’s effort to promote RE as the fifth power source under commercial customers. On 1 February 2002, TNB introduced the the national Fuel Diversification Policy. Sunday Tariff Rider (STR) and Off Peak Tariff Rider (OPTR) options. Both schemes will expire on the 31 May 2003. TNB lends its full support to the government in successfully implementing this SREP project by offering a higher electricity The main objective of STR and OPTR schemes is to provide purchase price (between 14-17 sen/kWh) compared to other customers an alternative during the financially challenging times by independent energy generation projects utilising non-RE fuel. increasing production, optimising operations and reducing their overall electricity cost. At the same time TNB will also benefit from The first Renewable Energy Power Purchase Agreement (REPPA) was the increase in revenue especially during the low load period. signed with Syarikat Bumibiopower Sdn Bhd. This SREP project is located in Pantai Remis, Perak and utilises oil palm waste as fuel. The The STR and OPTR schemes provide true ‘pricing signals’ to second REPPA was signed with Syarikat JanaLandfill Sdn Bhd. This customers during periods of lower system peak load. Customers with SREP project is located in Ayer Hitam Sanitary Landfill, Puchong, the ability to react to the pricing signals may increase consumption Selangor and utilises gas obtained from the natural refuse and productivity on Sundays and/or during off peak period (10 pm – decomposition process at refuse disposal sites. 8 am daily) and thereby benefit from the new tariff packages.
With the introduction of the schemes, TNB system peak load on Sundays increased from 7,418MW in Feb 2002 to 8,287MW in June 2002. This represents almost 900MW increase in system load in just 4 months. The outlook is that TNB system load for Sunday will increase further with the signing up of more 132kV and 275kV customers during September 2002. TNB Corporate Report 2002 99
CREDIT MANAGEMENT Customer Information Billing System (CIBS) applications have been enhanced to include financial and technical modules. This enhancement aims to ensure that sales (kWh) and income (RM) as well as metering information match the meter technology used. The purpose of this enhancement is also to improve credit control and reduce billing errors.
Efforts to increase government agency involvement in the Bulk Payment System (BPS) have been taken to ensure that more government agencies participate in the BPS. This is because BPS is able to help government agencies simplify the process of electricity bill payment for their premises throughout Peninsular Malaysia.
Introducing an efficient electricity bill payment method to ensure efficient collection of electricity bills is important so that customers are adequately provided with facilities and convenience to settle their electricity bills. The following new collection methods have been introduced: a) Direct Debit Payment through bank savings/current account. • Participating banks are Maybank, Public Bank, Bank Pertanian Malaysia and Bank Simpanan Nasional. b) Citibank Autopay Payment via standing instruction by Citibank credit card. c) Citibank Online Payment via Citibank website by Citibank credit card. TENAGA SPL SDN BHD Tenaga SPL Sdn Bhd (TSPL), is the developing agent of Renewable ENHANCEMENT OF CUSTOMER Energy and Energy Efficiency (RE & EE) related projects offering RELATIONS technical support and consultancy services. This adheres closely to the Malaysian Government initiatives on RE & EE programmes. The Industry Leaders Dialogue was held in the month of October and November 2001 in Metropolitan, Eastern, Southern and Northern Projects undertaken include the installation of the District Cooling regions to foster closer rapport with industry leaders. The objectives System (DCS) at the new Serdang Hospital and Sungai Buloh of the dialogue are to improve relations, share information on the Hospital, and under Pendinginan Megajana Sdn Bhd (PMSB), a joint latest developments within the electricity industry and also to get venture company, TSPL has commissioned Stage 2 of the DCS feedback from the Industry Leaders. This will help TNB understand project to supply chilled water to new customers at the Cyberjaya the needs of the business environment and allow the company to Flagship Zone. Under the EE programme, several energy audits have improve its services to its valuable customers. been conducted and energy performance contracts initiated for TNB customers. TSPL has ongoing technical support and consultancy services on power factor enhancement and power quality measurement.
Other RE projects being implemented by TSPL based on the “design & built” concept, are two solar hybrid projects for hill stations at the Cable Car Project, Gunung Machinchang, Langkawi and to the remote village of Kg. Denai, Pahang. The Project Services Division is a forward looking project services solutions provider. It is the parent and flagship of two main subsidiaries; TNB Engineers Sdn Bhd (TNBE) and TNB Engineering and Consultancy Sdn Bhd (TNEC) enabling a seamless integration of the two engineering entities allowing an opportunity to further develop an already wide range of services in an innovative and supportive environment. Project services TNB Corporate Report 2002 102
“Engineering, Procurement and Contracting (EPC) works continue to be the division’s main contributor in terms of revenue and cashflow.” TNB Corporate Report 2002 103
In the financial year 2001/2002, the Project Services Division generated a total revenue of RM225 million. Capital projects implemented by the Division were valued at RM629 million for Transmission Projects in the same period.
Engineering, Procurement and Contracting (EPC) works continue to be the division’s main contributor in terms of revenue and cashflow. The outlook for the division remains promising with stringent implementation of TNB planning processes and strategy. The division will continue to exercise a policy of aggressive improvement, effective cost management, building technical proficiency through staff training, maintaining its position as one of the leading support services arm within the TNB Group.
The Project Services Division recognises its workforce as its greatest asset. The division actively encourages professional enhancement through continuous professional training and development. The division promotes engineering excellence through its personnel’s participation in seminars and forums at local and international levels. Some of these are the Power Gen International, International Council on Large Electric Systems (CIGRE), International Commission on Large Dams (ICOLD), International Conference on Dam Safety etc. TNB Corporate Report 2002 104
TNB ENGINEERS SDN BHD During the year, most of TNBE’s activities were focused primarily on the implementation of transmission and distribution projects. These include all of the TNBT and Distribution projects above 33kV. Some of the projects undertaken by the division include 500kV, 275kV and 132kV substations, overhead lines and underground cables, completion of the 300/600MW TNB-EGAT 300kV HVDC Interconnection and the 500kV Grid System from Pasir Gudang to Bukit Batu in Johor and Kapar to Gurun in Kedah. TNBE will continue extending its engineering and project management services to Sabah Electricity Sdn Bhd in the implementation of the Sabah West Coast Grid Projects and East-West Link Project.
The TNBE Generation Project Department manages the implementation of generation projects including construction to completion of the Sultan Salahuddin Abdul Aziz Power Station – Phase 3 in Kapar and refurbishment and rehabilitation of its Phase 1 & 2 control & instrumentation, the 330MW Gelugor Power Plant Combined Cycle Conversion Project, and the Tuanku Jaafar Power Station Relocation & Demolition Project.
In addition, the TNBE Hydro Department carried out dam surveillance & monitoring works, feasibility studies for the proposed Ulu Jelai hydro project, contractors pre-qualification for Kenyir 2 hydro project, the replacement and upgrading of the governor and exciter system for the Temengor dam, and the desilting of dams and the control & instrumentation rehabilitation for the Cameron Highland hydro electric scheme.
In line with the vision to be a key player in the energy business, TNBE is currently providing project management and engineering services to various external customers including Brunei. TNB Corporate Report 2002 105
TNB ENGINEERING AND CONSULTANCY SDN BHD TNB Engineering and Consultancy Sdn Bhd (TNEC), continued to provide a supporting role within the TNB group as a turnkey contractor and project packager. The main focus of its activities is on EPC works and project development in the energy sector within TNB and the external market.
During the year, TNEC secured a major EPC contract for the 240MW Open Cycle Pasir Gudang Fast Track project. With the decision to relocate the Pasir Gudang project to Pulau Bunting, TNEC has also been appointed to undertake the project as the main EPC contractor. Major on-going projects include Gelugor Combined Cycle Conversion Project, and the Supply & Erection of eleven (11) transmission system substations of 132kV and 275kV.
Two projects were completed during the year – the Permanent Town Water Supply for TNB Janamanjung 2,100MW Power Plant and the Refurbishment, Expansion & Upgrading of Coal Handling Systems at Sultan Salahuddin Abdul Aziz Power Station. The Logistic Support Division is a new division, formed during the new macro organisation restructuring by TNB. It is made up of a number of different subsidiaries and departments with each having different businesses and functions. The subsidiaries within the division are Malaysia Transformer Manufacturing (MTM), Tenaga Switchgear (TSG) and Tenaga Cable Industries (TCI) while Insurance, Logistic, Workshop and the Security Services make up the departments. TNB Annual Report 2002 107 President/Chief Executive Officer’s Report
Logistic SUPPORT TNB Corporate Report 2002 108
However, while the process of restructuring is still ongoing, all the TENAGA CABLE INDUSTRIES SDN BHD departments are still functioning as subsidiaries except for the Tenaga Cable Industries Sdn Bhd (TCI) is principally involved in the Security Services. The main function of the division is to support the manufacturing and distribution of a wide range of power cables core business of TNB in ensuring that the short and long term including low to medium voltage cross linked polyethyleme (XLPE) objectives of TNB are met. cables (up to 33kV), Aluminium Conductors Steel Reinforced (ACSR), Optical Pilot Ground Wire (OPGW), low voltage general cables, and aluminium rods and aluminium alloy rods. MALAYSIA TRANSFORMER MANUFACTURING SDN BHD TCI is also able to provide engineering services from the design of Malaysia Transformer Manufacturing Sdn Bhd (MTM) manufactures power cabling systems and transmission lines to the actual distribution transformers ranging from 100kVA to 5,000kVA, 11kV to installation and maintenance of these systems. In short, TCI can 33kV. Power transformers ranging from 5mVA to 90mVA, 33kV to provide total cabling solutions. 132kV and repair power transformers. During the year, MTM supplied transformers (distribution and power) to Sabah West Coast extension grid project under Sabah Electricity Sdn Bhd, exported its first power transformer to Sri Lanka and repaired 353MVA, 20/294kV power transformer for Sultan Salahuddin Abdul Aziz Power Station, Kapar. TNB Corporate Report 2002 109
TENAGA SWITCHGEAR SDN BHD Tenaga Switchgear Sdn Bhd (TSG) was formed to meet the demands for high voltage switchgear, locally and within the region. TSG produces 275kV and 132kV systems, circuit breakers and disconnectors. TSG is involved in turnkey contracts for supply of switchgear and specialises in the maintenance of switchgear.
In the period under review, focus has been on TSG’s core business and the maintenance of high voltage switchgears. Special attention has been given to increasing TSG’s presence in the field where currently much of the day-to-day maintenance is carried out by original equipment manufacturers from overseas. TSG, which started its operation in manufacturing, has developed its maintenance skills and expertise to fulfill a vital need and at the same time, expand its business in this area.
TSG provides maintenance services for a range of products, including Gas Insulated Swithgears (GIS), Gas Circuit Breakers (GCB) and disconnectors, in its effort to provide support to TNB in ensuring a reliable and efficient system with minimal outages throughout the country. To date, maintenance work on 275/132kV GIS has been carried out in the KL East substations and in Sabah.
TSG has forged a pragmatic working relationship with original equipment manufacturers to provide quality maintenance solutions for high voltage switchgears in operation in TNB.
“The main function of the division is to support the core businesses of TNB in ensuring that the short and long term objectives of TNB are met.”
TSG is an ISO 9001 company, having gained certification from SIRIM, and is now in the process of upgrading this certification to the new 2000 version.
TNB LOGISTICS SDN BHD As a focal point to cater for group’s logistics need, TNB Logistics Sdn Bhd (TNBL) is mandated in supporting TNB core business units to provide cost effective and timely project delivery through managing the project specifications on logistics supply chain requirement.
Supported by experienced staff, the strength of the Company lies in its market knowledge and ability to select the best supplier for each logistics activity by taking advantage of the economics of scale TNB Corporate Report 2002 110
resulting in cost savings. Leveraging on this strength, TNBL also extends its logistics services to external contractors that have dealings with TNB.
During the year, TNBL was involved in planning and managing logistics arrangement for number of projects namely Gelugor Combined Cycle Conversion Project, Phase 4-500kV System Development at Bukit Tarek & Air Tawar and Sabah West Coast Grid Extension Project. TNBL involvement includes proposing best logistics methodology, selection of shipping and transportation mode, site and access route study, liaison with relevant government bodies for preliminary approval, appointment of Multimodal Transport Operators (MTO) through tender process and payment of custom duties and sales tax.
On the daily operations, TNBL undertook the inland tranportation for the delivery of 38 power transformers to various sub-stations throughout the country as well as managing inventory of project
cargoes stored in warehouses operated by third party logistics TNB RISK MANAGEMENT SDN BHD providers. On the freighting services, TNBL handled 347 shipments TNB Risk Management Sdn Bhd (TRMS), is responsible for procuring through air and sea for both import and export. on competitive terms and optimal protection against risk exposures for the Groups projects, assets and liabilities. In addition TRMS also To increase its service efficiency in particular inland transportation, provides advisory services to the Group and its associates on new and TNBL has successfully implemented schedule rates for conventional potential risks and liabilities to its operations, personnel and assets. and heavy cargoes. Vendor listing and database was also created. All these were aimed to cut down the delivery time process.
Under the concept of “Rakan Niaga” or business partner, TNBL will create a panel of efficient transporters and other service providers to meet TNBL’s growing needs and requirements. TNB Corporate Report 2002 111
The hardening of the global insurance industry has increased the need of better risk management for insurance buyers including TNB. TRMS has successfully played its role during the year by organising risk management training seminars on TNB projects and operational risks, with the support of an insurance company and brokers, to TNB personnel and contractors with the objective of strengthening greater risk management.
TNB WORKSHOP SERVICES SDN BHD The major focus of TNB Workshop Services Sdn Bhd (TNBW) during the period under review has been to extend its vehicle repair and mobile generator set (genset) operations to the Northern, Eastern and Southern regions of Peninsular Malaysia, increasing the reach of technical sophistication and security in this developing nation.
Mobile gensets are normally used during breakdown of power supply to minimise the interruption of supply to customers, providing a safe, temporary alternative. They are also used for scheduled maintenance in substations throughout the SECURITY SERVICES country to ensure quality, reliability and uninterrupted power supply. They play a The department provides security services to all major vital part in increasing consumer confidence in the services provided by the TNB premises and installations in the country such as company. power stations, district offices, stores and substations. The core business of Security Department is “reduce TNBW has the immediate aim of continuing its existing main activities of vehicle losses and protection of assets” and thus the department repair and mobile genset operations, adding mechanical fabrication and repair conducts investigations within TNB. Other security related works to its portfolio. The company foresees the expansion of vehicle activities work such as escort duties, non-technical audit, cash through a complete package of ‘Fleet Management’ to ensure better fleet control in-transit (CIT) and inquiries are also provided where and cost saving to the TNB Group of Companies. TNBW aims to expand its vehicle security services is call for. repair and genset operations to cover the entire area of Peninsular Malaysia. The department is represented in all the states in the country and managed centrally from TNB Headquarters, Bangsar. To support its operations, it has a staff compliment of over one thousand personnel comprising of Senior Managers, Managers, Executives and other ranks.
The staffs are regularly sent for courses and training in order to maintain their performance, awareness and professionalism. The department is also in the process of upgrading its equipment and developing new systems to ensure that service provided will meet customers requirement. TNB Corporate Report 2002 112
Information Communication &
The telecommunication unit of PTT (Protection, Telecommunication and Telecontrol) is responsible for the development, operation and maintenance of TNB's telecommunication network and services. Telecommunication services are for TNB’s operational, business and administrative applications. Several key projects were carried out and completed in this financial year. The projects were primarily targeted at improving and upgrading the performance of existing communications infrastructure and services.
high speed digital communications network using SDH (Synchronous Digital Hierarchy) technology operating at 622Mbit/s was commissioned in the Klang Valley in December 2001. This high speed, resilient and fully manageable network has been established to alleviate bandwidth bottlenecks and to improve reliability of the existing and ageing 34Mbit/s PDH (Plesiochronous Digital Hierarchy) Anetwork in the Klang Valley. The SDH project also includes a Network Management System and a synchronous clock system. In March 2002, a peninsular wide frame relay network was established. This network has been commissioned to provide switched data connections for TNB's operational, business and administrative services. The network will be used for telemetering, SCADA, fault recorder data acquisition, billing, intranet applications such as e-mail, information system services, video-conferencing, web hosting and other IT applications. The frame relay network will replace the existing data network that was built using routers and will provide reliable data connections for more than 200 offices of the Company to TNB's corporate wide area network. TNB Corporate Report 2002 113
Technology
A project to install optical fibre on TNB's transmission lines for applications. Narrow band applications will be utilised for TNBD’s extending the existing corporate fibre optic network to TNB's business SCADA and remote metering initiatives while broadband applications offices is currently being implemented. When completed, many of the will be for internet access. business offices will be connected using existing last mile fibre optic cables to the nearest transmission substation equipped with fibre. In line with PTT(Telecommunication)'s long term plan as contained in the 5 year Telecommunication Master Plan (2000-2005), several The telecommunication unit completed establishing a projects have been identified as listed below: Telecommunication Control Centre for managing the PDH, SDH, • Installation of backup optical fibre cables router, frame relay and PABX networks. The SDH, frame relay and • Development of SDH backbone network router NMS have already been installed while commissioning of the • Completing or closing the optical fibre loop PDH NMS is scheduled to be completed in November 2002. Once all • Providing internal voice communication the management systems are established, telecommunication control engineers will be able to monitor, manage, configure, measure All efforts being undertaken and planned by the department are targeted performance and obtain alarms and fault reports. at improving reliability, availability and performance of telecommunications services for TNB’s operation, business and PTT(Telecommunication) is working with TNB Research Sdn. Bhd. and administrative services. Installation of the backup optical cable, Fibercomm Network Sdn Bhd to evaluate the possibility of using establishment of the telecommunication control centre and use of SDH Digital Powerline technology for narrowband and broadband technology ensures TNB’s business needs, and risks are well managed. TNB Corporate Report 2002 114
Information Technology TNB-IT Sdn Bhd, an ISO 9001 certified provides key IT products and services to the TNB Group and Subsidiaries.
or the past year, TNB-IT has implemented several important projects. The upgrading of the head office network backbone, corporate wide area network, and upgrading of the messaging and collaboration system to ensure greater reliability Fand efficiency in communications throughout the company. Working closely with the Human Resource Division, TNB-IT is in the process of enhancing the Human Resource Information System (HRIS) and rolling out the SmartCard project, which regulates security access and provides the foundation for our Employee Electronic Application such as e-Time, e-Health, e-Library and e-Kiosk. These services will improve the efficiency of TNB’s workforce, thus benefiting customers. TNB Corporate Report 2002 115
To supply the best in products and customer care services, TNB-IT has developed several web- based applications to manage project tracking (pTrack) and staff training plans (STS). These have proven so successful that we have customised similar versions for other divisions. Advanced business operations and management from TNB-IT’s Data Centre has ensured an uptime of higher than 98% throughout the year for mission-critical applications.
In the coming years as to support the company’s efforts in improving risk management, TNB-IT is focusing on projects that strengthen the infrastructure and application level services. Reinforcing its already secure firewall, content filtering and antivirus protection systems, TNB-IT will continue to carry out Security Assessment over the company’s infrastructure as a continuous effort in protecting TNB’s information assets embark on an Intrusion Detection System to monitor unauthorised access. High availability options such as Server Clustering and Load Balancing, and controlled by a Network Management System would offer continuous services and centralised administration.
The Enterprise Resource Management System (ERMS) Project managed by TNB-IT, is an organisation-wide effort to optimise TNB’s business processes and deliver top-quality integrated resource planning. It is targeted to provide an enterprise information system which fully integrated, flexible and efficient. TNB-IT is also spearheading the Enterprise Video Conferencing System (EVCS) that will allow global communication and minimise travel and logistic costs. Last but not least, TNB-IT is migrating to ISO 9001:2000 certification.
TNB-IT is continuously striving to deliver the best IT solutions and services to its customers. With a committed, dedicated and experienced workforce that regularly updates itself through the latest technical training and knowledge-based management, TNB-IT targets to be the preferred IT provider for TNB. TNB Corporate Report 2002 116 Sabah
Electricity SDN BHD “The company has computerised its operations to enable all 23 stations throughout Sabah to operate online using SAP software and in 2002, launched its Trouble Call System Project (TCS).”
The major focus for Sabah Electricity Sdn Bhd (SESB) during the financial year 2002 has been to maintain its long term goal of substantially improving the quality and consistency of the electricity supply throughout the state. Several projects have been undertaken to further enhance the delivery line and supply system across the entire geography of Sabah, including the Federal Territory of Labuan. The fruits of this labour continue to show pleasing results with the number of supply interruptions during the period under review reduces to 9,689 versus 10,388 (financial year 2001), 10,296 (financial year 2000), 13,677 (financial year 1999) and 15,644 (financial year 1998), before SESB took over electricity supply operations in Sabah.
Increased use of Information Technology during the year has played a vital role in the implementation of the improvement programme outlined above, providing digital security for the company and consumer. The company has computerised its operations to enable all 23 stations throughout Sabah to operate online using SAP software. The administration and operations control systems will operate SESB continues to face increases in operational costs resulting more effectively in addressing issues under SESB’s jurisdiction. from the high purchase price of electrical power from Independent Power Plants (IPP) and the more than 100% Another milestone during the period under review has been a significant step increase (from 57.45 sen/litre to 61.25 sen/litre, as agreed in the improvement of customer service. SESB launched its Trouble Call with Petronas Dagangan Berhad) in diesel fuel and medium System Project (TCS) in 2002. TCS is a breakdown complaint system that fuel oil in the global market. As a result, in the financial year links the customer directly to the Call Management Centre (CMC). All 2002, SESB incurred a net loss of RM237.06 million, with breakdown complaints received by CMC will be channelled to the appropriate operational costs amounting to RM872.27 million as stations via TCS to update the report status at CMC providing up to the compared to RM752.83 million in 2001. It is anticipated that minute and accurate information at all levels. This system has improved the fuel prices will continue to increase in the global market and speed and efficiency of customer complaints management and as a result with the heavy dependency on these sources to supply enhanced the relationship between the company and consumer. electrical power, SESB is expected to continue facing increased resources costs in the immediate future. Stage Three East-West Interconnection Grid delivery line construction project connecting the East and West Coast Grids of Sabah is expected to complete in 2005.
The completion of the above projects will radically change power generation in the state of Sabah. Electrical power generator stations using diesel can be shut down and the electricity supply can be channelled using cheaper energy sources such as natural gas and hydro. SESB’s power generation mix up to 31 August 2002 is represented in the diagrams below:-
Generation (Capacity) Mix Hydro: 72MW 9.4%
Gas (SBSB): 104MW 13.5%
Gas (IPP): 120MW 15.6%
Oil (SBSB): 302MW 39.3%
Oil (IPP): 170MW 22.2%
768MW 100%
In Peninsular Malaysia, the Government has forged an agreement to regulate the price of gas at RM6.4/mmbtu, with effect from 2000, which Generation (Energy) Mix has offset some of the above increases in oil and diesel-fuel prices. Hydro: 413.14GWh 15% SESB has taken several steps to offset the increase in production Gas (SBSB): 390.72GWh 15% costs, in particular fuel oil cost, to reduce the effect of price increases in these materials. In the short term, immediate efforts have been Gas (IPP): 728.32GWh 27% made to reduce power generation by stations using fuel oil in the Oil (SBSB): 401.39GWh 15% West Coast Grid area of Sabah where alternative generation sources using natural gas as fuel can be exploited. The company has also Oil (IPP): 734.03GWh 28% made long-term plans to reduce its dependency on diesel fuel which 2,667.60GWh 100% is subject to price fluctuation in the international market. SESB has embarked upon an ambitious transmission line construction project (East-West Interconnection Grid) to connect load centres in the In this financial year, the Government agreed to proceed with eastern and northern regions to the West Coast Grid of Sabah. This the construction of the Bakun Hydroelectric project and related RM970 million project is financed through a Federal Government transmission lines to be supplied to Sabah by 2007. grant. The project is expected to be completed in stages as follows: With the existence of a grid network throughout Sabah by 2005, Stage One East Coast Grid delivery line construction project SESB will be in a position to reduce its dependency on diesel and oil connecting the areas of Sandakan, Lahad Datu, fuels and can consequently channel energy from the Bakun Tawau and Semporna is originally scheduled for Hydroelectric Project in Sarawak to feed supply. completion by the end of 2001. However, due to problems in obtaining wayleaves and other factors, this project can only be fully completed in 2003.
Stage Two Northern Grid delivery line construction project connecting Kota Kinabalu and northern Sabah (Kota Belud, Kota Marudu dan Kudat) is expected to complete in 2003. inspiringexcellence Pride, passion, belief.
They are flames that need to be fanned. TNB Corporate Report 2002 120
Our Contribution to Society
Throughout the year, TNB has continued to demonstrate its role as a caring corporate citizen through a multi-faceted approach encompassing targeted corporate contributions, sports sponsorship, welfare aids, educational financial support and projects which have holistic benefit. TNB has a firm commitment to support and improve socio-economic values within the community and the environment.
Realising its pledge in humanitarian assistance, TNB has made a significant An air of expectancy and excitement surrounded the nation as the city contribution in providing medical equipment and professional medical aid welcomed 10 countries to the 21st SEA Games in Kuala Lumpur. TNB to war-torn Kosovo in September 2001. Nationally, TNB contributed sponsored a total of RM3.8 million to support this grand occasion. The towards the Hospital UKM Patients Welfare Fund launched by Datin Seri cream of the country turned in a memorable performance at the first SEA Dr. Siti Hasmah Haji Mohd Ali. Games of the new millennium as Malaysia emerged the overall champions in history. TNB’s most valuable asset, the staff, have always been given due attention and concern by the Company with activities such as The Long TNB remains committed in supporting the Government’s effort to foster Service Award and Family Day. This helps to inculcate a sense-of- excellent academic and technical skills at all levels of education. The belonging to both the Company and the Nation. Company donated computers to selected schools from rural areas in the country. In line with the technological demands, students are given As one of the leading corporations that contribute to sports excellence, opportunities to broaden their knowledge in pursuit of higher learning. TNB has produced world-class hockey players in its work force. TNB encourages active participation in the local and international sporting Universiti Tenaga Nasional, equipped with state-of-the-art facilities, arena, including sports such as cricket, football and equestrian. persevere in producing young academics to spearhead the nation’s development and progress towards a brighter future.
TNB remains committed as a caring corporate citizen through various projects and social activities that has been planned for the years to come.
The Kilat Sixes & Sevens Hockey Open 2002 Tournament. Computer amenities donated to schools in rural areas.
Knowledge is power – Young leaders for a brighter future. TNB – Proud co-sponsor of the 21st SEA Games.
On the world scene – Langkawi International Dialogue (LID) 2002.
Malam Tinta Cahaya – Our appreciation to the media.
Jasa Dalam Ingatan – Where memories treasured, contribution recognised and loyalty appreciated.
Cricket – Another sporting excellence of TNB. calendar of events 2001-2002 sept2001 aug2001 july2001 the torch run. ceremony, where100TNBstafftookpartin became thevenuefortorch exchange tennis andkarate-do.TNBheadquarters contributed competitionvenuesfortable- Games XXIheldinKualaLumpurand TNB wasoneofthemainsponsorsSEA Games –8-17September2001 TNB AmongstTheMainSponsorofSEA ofnature. preservation organisation’s commitmenttowardsthe This awardisinrecognitionofan Prime Minister’s HibiscusAward 2000/2001. power stationswerenominatedforThe TNB’s SerdangandSultanMahmud,Kenyir – 2000/2001 The PrimeMinister’s HibiscusAward over theworldtookpartinthisevent. Club, KualaLumpur. 100participantsfromall 2001 heldattheSelangorRiding&Polo winners oftheTNBEquestrianInternational Minister ofMalaysiapresentedprizestothe Dato SeriDr. MahathirMohamad,Prime – 29July2001 TNB EquestrianInternational2001
oct2001 sept2001 Headquarters SportsComplex. the fun-filledoccasionheldatTNB Fuad Jaafar, formerPresident/CEO,attended Dato’ MohdJarjis,TNB’s ChairmanandDato’ the KlangValley area.Dato’Dr. Jamaludin more than12,000staffandtheirfamiliesfrom Our FamilyDay2001celebrationattracted TNB FamilyDay–30September2001 the internationalevent. Communications andMultimedia,officiated T held atTheMines,KualaLumpur. Datuk power generationconferenceandexhibition TNB co-hostedthePOWER-GENASIA2001 – 19-21September2001 TNB Co-HostedPower-Gen Asia2001 Perak’s teamemergedasthechampion. Club, IpohandKDYMMPadukaSeriSultan The teamsplayedattheRoyalPerakGolf TNB andKDYMMPadukaSeriSultanPerak. A friendlygolfannualeventwasheldbetween Te and higherlearninginstitution. books werealsodistributedtoschoolchildren Mansor’s solovoyagearoundtheworld.The inspiring bookthatchroniclesDato’Azhar Wild: TheJalurGemilangChallenge;an TNB sponsoredthepublicationofOcean – 2October2001 Ocean Wild:TheJalurGemilangChallenge an ChaiHo,DeputyMinisterofEnergy, mengor Cup–13October2001 Media Night – 7 November 2001 The QCS-IT Convention and National TNB held a Media Night, themed Malam Tinta Innovation Exhibition 2001 Cahaya at the Legend Hotel in appreciation – 11-12 November 2001 towards the media. More than 500 The QCS-IT Convention and National Innovation representative from prints and electronic Exhibition organised by TNB was held at media attended the event. UNITEN, Bangi. Dato’ Pian Sukro, President/ CEO officiated the event. The Convention attracted 23 teams while the Innovation
National Level Al-Quran Educational 2001 Exhibition drew 28 teams from various Programme – 8-9 November 2001 stations/departments all over Malaysia The 28th National Level Al-Quran Educational respectively. Programme was held in Segamat, Johor. The event also featured a nationally televised
Islamic Public Affairs Forum and was nov officiated by Dato’ Dr. Jamaludin Dato’ Mohd Jarjis, Chairman of TNB.
Mesra Aidilfitri TNB – 22 December 2001 TNB organised a Hari Raya Aidilfitri gathering at the TNB Headquarters Sports Complex.
2001 Guest of honour was Dato’ Dr Halim Shafie, Secretary General of the Ministry of Energy, Communications and Multimedia. nov 2001
PDRM/TNB International Endurance Ride dec 2001 – 11 November 2001 Jointly organised by TNB and The Royal Malaysian Police, the PDRM/TNB FEI (Federation Equine International) International Endurance Ride 2001 from Putrajaya to Bangi was attended by Dato Seri Dr Mahathir Mohamad, the Prime Minister, who also took part in the internationally recognised horse riding event. Ground Breaking at Pulau Bunting APEC Coal Flow Seminar/Clean Fossil – 29 January 2002 Energy Technical Seminar/Coal TILF A ground breaking ceremony was held to Workshop – 4-5 March 2002 pave way for construction of a RM4 billion TNB Fuel successfully organised the 8th power station at Pulau Bunting, Yan, Kedah. APEC Coal Flow Seminar, 9th APEC Clean Dato’ Seri Syed Razak Syed Zain, Kedah Fossil Energy Technical Seminar and the 4th Menteri Besar, launched the project at Pantai APEC Coal TILF Workshop, theme “Coal in Murni, Yan. Sustainable Development in the 21st Century” at a major hotel in Kuala Lumpur.
“A Day With The Customers” Programme
2002 at Kuala Kelawang – 30 March 2002 Around The World Cycling Challenge TNB participated in “A Day With Customers” – 27 January 2002 road show at Kuala Kelawang, Jelebu, Negeri TNB sponsored a “Welcome Back” reception Sembilan, organised by the Ministry of for the nations Around The World Cycling 2002 Energy, Communications and Multimedia. jan Challenge hero, Dato’ Hasan Nawawi Abdul The programme, aimed to foster better Rahman, which was held in Putrajaya. Dato relationship with the community was held at Seri Dr Mahathir Mohamad, Prime Minister selected rural areas in the country. of Malaysia also attended the event. mar
Chinese New Year Celebration – 20 February 2002 TNB organised the Chinese New Year gathering at the TNB Headquarters Sport Complex. Guest of honour was Dato’ Tan Chai Ho,
2002 Deputy Minister of Energy, Communications and Multimedia. feb calendar of events 2001-2002 Royal Visit to TNB – 4 April 2002 Signing Ceremony Between TNB & EGAT His Majesty, DYMM Seri Paduka Baginda – 14 May 2002 Yang di-Pertuan Agong made an offical visit TNB signed the HVDC System Interconnection to TNB Headquarters where he was briefed on Agreement 2002 with Electricity Generating TNB’s operations. This provided an opportunity Authority of Thailand (EGAT) held at the for TNB staff in meeting His Majesty. Mandarin Oriental Hotel, Kuala Lumpur. Datuk Amar Leo Moggie, Minister of Energy, Communications and Multimedia, witnessed the event. 2002 2002 apr
Long Service Award – 29 May 2002 may More than 848 loyal TNB employees were feted at our Long Service Awards ceremony held in Kuala Lumpur. Momentos were given out to those who had been in service for more than 25 years.
2002 National Hockey League Champion The TNB Hockey team became the undisputed National Hockey League Champion for the second year running. Several TNB players went on to don national colours at the World Cup Hockey 2002 tournament held in Kuala Lumpur. 2002 Labour Day 2002 – 4 May 2002 TNB Sports Carnival 2002 TNB participated in the Labour Day 2002 – 1-2 June 2002 national level celebrations which were held at TNB held its inaugural Sports Carnival 2002 Stadium Melawati, Shah Alam. The gathering, at Universiti Tenaga Nasional, Bangi. In the themed “K-workers: Forefronting the event, five zones ranging from North, South, may Globalisation Challenge” was officiated by East, Metropolitan and Headquarters
Dato Seri Dr Mahathir Mohamad, Prime 2002 participated. It was officiated by Dato’ Pian Minister of Malaysia. Sukro, President/CEO of TNB. All prizes were given out by Dato’ Dr. Jamaludin Dato’ Mohd Jarjis, Chairman of TNB. june calendar of events 2001-2002 july2002 june2002 electrical supply. totalling RM3.3milliontoredevelopBosnia’s SCADA systemispartofTNB’s aidpackage final partoftheSCADAsystemtoJP. The topresentthe BiH ofBosniaHerzegovina a workingdelegationtoJPElektroprivreda Dato’ PianSukro,President/CEOofTNB,led Bosnia Herzegovina President/CEO LedTheDelegationto attracted morethan5,000visitors. Mines ExhibitionCentre,KualaLumpur countries. Thefourdayexhibition,heldatthe participation of150companiesfrom16 TENAGA 2002ExpoandForumsawthe – 18June2002 TENAGA 2002ExpoandForum
aug2002 july2002 and Multimedia. Moggie, MinisterofEnergy, Communications event wasofficiatedbyDatukAmarLeo Pyramid ExhibitionCentreinSelangor. The Distribution 2002heldattheSunway Symposium andExhibitiononElectricity TNB participatedintheCIREDRegional – 5-7August2002 CIRED RegionalSymposiumandExhibition the government’s policies. Kedah. Itwasaimedatbriefingthepublicon Kumpulan UtusanMalaysia,heldatJitra, and organised bytheInformationMinistry Expo (Pembaca,Penonton,Pendengar) TNB participatedintheNationalLevelK3P – 19-21July2002 National LevelK3PExpo