Communicating to Large Power Customers

COMMUNICATING TO LARGE POWER CUSTOMERS

KDN : PP8515/01/2013(031995)

What you need to know about ELECTRICITY TARIFF REBATE DUE TO ICPT...

Hydropower Malaysia Going Paperless Powerline Safety, Emergency Aid Showcasing a Century with e-Billing effort Energy Efficiency & TNB Flood of Success Power Quality Advice Relief Efforts from KeTTHA’s View Volume 2 | 2015 www.tnb.com.my homes equippedwithelectricity, water andproper sanitation. We doallthisto better lives for abrighter tomorrow. to ease theburdens ofthenation’sa part needyby transforming homes considerably worse for wear into comfortable Hence, through programmes ourcommunity suchasProjek andProjek Rakyat Mesra BaitiJannati, we have played Progress meanslittleat allifthecommunities inwhichwe dobusinessdon’t bene tfrom ourendeavours too. T ENAGA NASIONAL BERHAD (200866-W) Community_TLINK SIZE.pdf15/20/1510:32AM more thanafresh coat ofpaint. Sometimes, happinessisnothing pg 1.pdf 1 1/29/15 5:02 PM MESSAGE

enaga Nasional Berhad (TNB) is poised to build on Meanwhile, TNB has also instituted measures to further Tand exceed the achievements it realised in 2014, to strengthen our operations to ensure continual accomplish greater success this year. improvements in terms of efficiency and reliability. In addition to raising the effectiveness and profitability We have made numerous efforts to ensure that we are of our operations, this approach is also vital towards prepared for the implementation of the 6% Goods and guaranteeing that electricity supply can be provided Services Tax (GST). At the same time, TNB has initiated at the electricity tariff rebate due to ICPT which was a number of measures to ensure that its Large Power recently approved by the government. Customers (LPCs) are equipped with the knowledge and expertise necessary to satisfy the new compliance Through these developments, TNB continues to requirements introduced alongside the GST. demonstrate that in spite of fluctuations in global prices and shifts in the Malaysian regulatory landscape, we Primarily, we have revamped the electricity bills remain committed to consistently raising the standard received by LPCs to allow them to serve the additional of services rendered to our customers. function of a tax invoice, in addition to presenting them in an electronic format which is more convenient and efficient. Aside from the enhanced speed with which TNB is now able to issue monthly bills, this also means that LPCs are provided with all the documentation Datuk Ir. Baharin Din necessary to file for tax returns and recover the GST- Vice President (Distribution) related costs attached to their electricity consumption. Tenaga Nasional Berhad

VP's Message1.indd 1 5/22/15 5:43 PM Feedback

We welcome your FEEDBACK, CommEnts and/or suggEstions to help us improvE our sErviCEs.

Please email your responses to [email protected] or log on to www.tnb.com.my/customer-care.html.

Volume 2 3

Feedback.indd 5 5/22/15 10:15 AM Contents

MESSAGE FROM ThE VICE SPECIAl FEATURE PRESIDENT (DISTRIBUTION) 2 18 electricity tariff reBate due to icpt Frequently asked questions NEwS AND hIGhlIGhTS on the recent electricity tariff review. 6 Local and international energy news, breakthroughs and policies. cultivatinG caution 20 TNB’s efforts to propagate COVER FEATURE responsible techniques and procedures, and inculcate a safety- GettinG to 10 oriented working culture among Grips with Gst farm and plantation operators. Tenaga Nasional Berhad (TNB) enerGy efficiency and enerGy cost prepares Large Adopting Energy Efficiency is a Power Customers 22 multi-edged solution to financial and (LPCs) for the environmental power concerns. Goods and Services Tax (GST). CORPORATE RESPONSIBIlITy INSIDE TNB 34 helpinG hands The late-2014 East Coast floods at continuous supply flow 24 their onset, TNB provided relief and Malaysia’s hydropower dams, in terms respite to those most affected. of supporting the nation’s sustained growth and development. ExPERT TAlk TENAGA GREEN 38 iMportance of power Quality Highlighting TNB’s efforts to maintain strateGic partnership 28 effective and efficient communication Megagreen and TNB exchange with LPCs, to minimise avoidable documents at the Biogas Asia Pacific downtime. Forum 2015 to spur the advancement of biogas development. DIRECTORy paperless BillinG A listing of TNB offices and service The new TNB electronic billing for LPCs 41 30 centres across the country. enables optimised natural resources.

Publisher Conceptualised and Produced by

Distribution Division, Tenaga Nasional Berhad AMG Holdings International Sdn. Bhd. Wisma TNB, No. 19, Jalan Timur (356247-V) 46200 Petaling Jaya No. 10-3A, Jalan PJU8/3 Selangor Darul Ehsan, Malaysia Damansara Perdana, 47820 Petaling Jaya Tel: + 603-7967 9000 Selangor Darul Ehsan, Malaysia Fax: +603-7960 0343 Tel: +603 7729 4886 Email: [email protected] Fax: +603 7729 4887 Website: http://www.tnb.com.my Website: www.amginternational.net

may also be read online at www.tnb.com.my/business/tenaga-link.html

contents1.indd 4 5/25/15 2:14 PM pg 5.pdf 1 5/21/15 6:58 PM SMArTEr SAvINgS

“We hope to install smart meters in the households of each of our millions of domestic customers within 10 years.”

– TNB President and Chief Executive Officer Datuk Seri Ir Azman Mohd

Tenaga Nasional Berhad (TNB) is presently in the Through the use of digital technology, smart meters also process of undertaking a large-scale pilot project to facilitate the sharing of information on the generation, determine the feasibility of implementing smart transmission and consumption of electricity among electrical meters across the entire national grid. energy suppliers, distributors and consumers. Aside from This is to enable the utility’s domestic, commercial enabling all energy sector players to better monitor and and industrial customers to better manage and predict electricity demand, Education Minister II Datuk optimise their utilisation of electricity. According Seri Idris Jusoh highlighted that the technology will also to the company’s President and Chief Executive enable consumers to improve understanding of their own Officer Datuk Seri Ir Azman Mohd, the utility is consumption patterns. He added, “It will help consumers planning to dramatically increase the adoption of monitor their energy consumption; for instance, they can such devices over the coming decade. “We hope to set the washing machine to run during non-peak hours. install smart meters in the households of each of our This will allow more control over monthly electricity millions of domestic customers within 10 years,” bills and help prevent blackouts during periods of peak revealed Datuk Seri Ir Azman. demand.”

News&Highlights3.indd 6 5/25/15 2:16 PM NEWS AND HIgHlIgHTS

SECurINg COAl SuPPly To ensure the availability of adequate sources of limestone, iron ore and biomass in addition to coal, feedstock for its coal-fired electricity generation TNB issued a notice of intent to take over the company facilities, Tenaga Nasional Berhad (TNB) had bid on 9 January 2015. to takeover infrastructure firm Integrax Bhd, which operates the strategically located lumut Port, near In late March 2015, Perak Corp relinquished their the utility’s 2,100MW Janamanjung power plant in 15.74% share in Integrax to TNB, enabling the latter to Manjung, Perak. attain a 50.83% stake in Integrax. Subsequently, the other major shareholder of Integrax at the time, Amin The port comprises the lumut Maritime Terminal Halim rasip, announced that he too has accepted TNB’s (lMT) and the lekir Bulk Terminal (lBT), the latter of offer and disposed his 24.76% stake in the company. which has predominantly handled coal shipments in With this new development, TNB successfully acquired the past. Following Integrax’s announcement of plans 90.21% of the voting shares in Integrax, officially to convert the lBT into a multi-use terminal handling assuming ownership of the company.

To secure reliable supplies of feedstock for its 2,100MW Janamanjung power plant in Manjung, Perak (foreground), TNB has raised its offer for the takeover of the conveniently located Lekir Bulk Terminal (LBT) (in background).

volume 2 7

News&Highlights3.indd 7 5/21/15 5:41 PM grEENEr PrOSPECTS According to a recent statement by the Ministry of of 84,565. Meanwhile, the Minister also explained Energy, green Technology and Water (KeTTHA), the that in line with the National Electric Mobility Action continued adoption of green technology products and Plan (NEMAP), 300 electric vehicle charging stations services is set to raise the sector’s contribution to would be constructed across the country by the end Malaysia’s gross Domestic Product (gDP) to rM22.4 of this year, at a projected cost of rM5 million. This billion by the year 2020 and rM60 billion by 2030. initiative complements various priorities identified Announcing these figures during his address at under the NEMAP, by promoting the use of electric the launch of the yaHijau green youth of Malaysia vehicles in public transport, strengthening the electric Foundation at universiti Malaysia Sabah (uMS) in mobility ecosystem and relevant infrastructure, and labuan on 28 February 2015, KeTTHA Minister Datuk expediting the development of local electric mobility Maximus Ongkili also stated that this would be a result technology. of the strategies and approaches implemented through the green Technology Master Plan (gTMP). In addition to contributing towards increased investment in the green technology products and services sector, the propagation of solar Datuk Maximus also revealed that under the gTMP, photovoltaic power plants such as this also the Ministry anticipated the creation of an estimated serves to supplement energy supply through 144,590 employment opportunities by 2020 and a total the use of renewable alternatives. of 211,500 by 2030, as compared to the 2014 figure

News&Highlights3.indd 8 5/21/15 5:41 PM NEWS AND HIgHlIgHTS

GLOBAL RESERVES Coal The percentages of coal, gas and oil reserves that should not be burned in order to prevent a global temperature increase of more than 2°C.

Gas

82% 49% Oil

33%

Sources McGlade & Ekins, Nature, 2015

PrEvENTINg ClIMATE CHANgE According to a new research done by university At the current rate of fossil fuel usage, it is predicted College london (uCl), and published in the journal that the world will experience a catastrophic 5°C rise Nature, massive amounts of the world’s coal, oil and in temperature. As explained by Christophe Mcglade, gas reserves have to stay unburned if the planet is who helmed the research team, they have tangible to remain under a global temperature increase safety figures of the quantities and locations of fossil fuels limit of 2°C, which was agreed on by the world’s that should remain unused in trying to keep within nations. vast reserves of oil in the Middle East, and the 2°C limit. A global climate deal is expected to be coal in the uS, Australia and China will have to be left established at the uN summit, scheduled to be held in the ground. in Paris in December 2015.

volume 2 9

News&Highlights3.indd 9 5/21/15 5:41 PM TNB Helps Large Power Customers Navigate Compliance

10 Cover feature

ntroduced over three decades ago, the Sales and Service Tax (SST) utilised by the Malaysian government has been due for Ia revamp for quite some time. Announced in October 2013, the Goods and Services Tax (GST) replaces the SST, to enhance the efficiency, effectiveness and transparency of the tax system, while distributing the financial burden more fairly, based on consumption patterns rather than income.

In light of these developments, Tenaga Nasional Berhad (TNB) has concertedly sought to ensure that Large Power Customers (LPCs) and businesses, including SMEs, transition to the new system as smoothly as possible. For this issue’s Cover Feature, TENAGALINK takes a detailed look at these efforts, as well as the intricacies of GST and the ways in which it impacts electricity costs faced by LPCs.

Distinct Differences In effect on 1 April 2015, the GST As explained by TNB Chief is a broad-based consumption tax Financial Officer (CFO) and Vice which is levied at 6%. In addition President (Group Finance) Fazlur to applying to goods and services Rahman Zainuddin, the step of which are supplied within Malaysia, registering is therefore vital, as the GST also applies to services it is the only way for companies which are imported and used in to recover the tax-related costs the country – which is in stark imposed by counterparts higher contrast to its predecessor. Aside up in the supply chain. “LPCs from providing the benefit of the making taxable supplies which are reduced tax rate in comparison registered for GST will find that to the previous 10% rate under the GST-related costs previously the SST, the GST is also expected incurred do not raise the cost of to improve the efficiency and business, as they can recover the effectiveness of tax administration GST paid through the RMCD’s input and management as it places a tax credit mechanism,” he notes. greater burden of compliance on the part of companies. As a result of this, the new system is also anticipated to drastically In fact, it is mandatory for all reduce the prevalence of companies companies with a yearly turnover operating in the black market, of RM500,000 or more to register as they will naturally face higher for GST with the Royal Malaysian costs should they choose not to Customs Department (RMCD) – register for GST. Interestingly, the which continues to administer the RMCD also recently reported that tax regime, just like it did with the the number of companies which SST. This is because companies play have registered to date exceeds a pivotal role in the new taxation the estimated total number of framework, facilitating the collection companies with turnover above the of taxes on behalf of the RMCD. designated threshold.

Volume 2 11 “TNB has taken meticulous steps to ensure that the format of electricity bills which are sent to LPCs complies with the various criteria and requirements prescribed by the Royal Malaysian Customs Department.”

– TNB Chief Financial Officer and Vice President (Group Finance) Fazlur Rahman Zainuddin

This demonstrates that even the Due to the broadened scope of operators of Small and Medium items which are subjected to tax Enterprises (SMEs) acknowledge under the GST, the new system also the importance of complying with allows the government to widen the new rules and procedures, and diversify the tax base. This to ensure that they do not not only creates greater flexibility face unnecessary costs and are in the nation’s sources of revenue, able to pass them on to the final but it also allows the government consumers of the goods or services to reduce its reliance on revenues they provide. obtained through direct taxes.

National Significance While the GST is designed to improve adherence through its In addition, the GST brings in-built mechanisms to promote Malaysia’s tax regime in line with self-compliance, it should be international standards practised noted that this very feature also by an estimated 90% of countries underpins the new system’s crucial around the world, ranging from advantage of being tax-neutral regional nations such as Singapore to the private sector. Even so, to developed Western countries there are significant requirements such as the United States and the that companies must adhere to, United Kingdom. As a result, the meaning that businesses should new system also provides greater be prepared to bear the costs simplicity in administering the associated with the administrative tax regime as it adopts a negative procedures entailed. concept in which all goods and services are subject to GST unless Working Together specifically exempted. This is in contrast to the previous services Additionally, Fazlur Rahman tax, where only specifically highlights that in ensuring that identified services were taxable. its LPCs are well-prepared for the Continued on page 15

12 Cover feature

UNDERSTANDING GST

Manufacturer pays 6% GST Tax to Customs Import Raw Materials : RM100 6% GST Paid : RM 6 (Input Tax)

Manufacturer collects 6% GST based on selling price Selling price : RM100 + RM100 (Including Profit) = RM200 6% GST Collected: RM12 (Output Tax) Manufacturer

Supplier pays RM12 Tax to Manufacturer Purchase from Manufacturer: RM200 6% GST paid: RM12 (Input Tax)

Supplier collects 6% GST based on selling price Selling price: RM200 + RM100 (including Profit) = RM300 6% GST Collected : RM18 (Output Tax) Supplier

Costomer pays 6% GST for the Items Total Price paid RM 300 + RM18 (GST) Customer

During an outreach programme held in Klang Valley with LPCs on implementation of the GST, senior representatives from TNB were on hand to field queries and provide clarification. Among them are Commercial Management Unit General Manager Abu Bakar Ismail (far left), Revenue Management Unit Assistant General Manager (Billing) Selimin Othman (second from left), and Customer Service Senior General Manager Ir Kamaliah Abdul Kadir (fourth from left).

Volume 2 13 Right: During the Seminar and Dialogue Session on the Goods and Services Tax (GST) with TNB’s Commercial and Industrial Customers, over 300 representatives from large commercial and industrial enterprises across the country were in attendance.

FREQUENTLY ASKED QUESTIONS

Are deposits subject to GST? No, deposits are not subject to GST.

Are late payment surcharges/power factor surcharges/connected load charges subject to GST? No, these charges are punitive in nature. So they are not subject to GST.

DID YOU KNOW? The supply of electricity to non-domestic customers is subject to 6% GST.

Non-domestic customers who have registered for GST and are making taxable supplies can claim GST paid on their electricity bill through the Input Tax Credit (ITC) mechanism.

14 Cover feature

Why Malaysia Needs GST First introduced in 2009, the proposal to implement GST in Malaysia underwent several rounds of deliberation before arriving at its present form. Among the main reasons for its adoption are to:

Broaden the tax base and diversify the government’s revenue sources

Distribute the financial burden more fairly and evenly

Enhance the transparency and consistency of the taxation regime

Promote the practice of self-compliance among the private sector

Simplify the administration of taxable items and exemptions

Continued from page 12 implementation of the GST, TNB has The impact of the Incentive Cost “Engagement efforts such as this initiated a number of programmes Pass Through (ICPT) mechanism provide the platform for TNB to and seminars to provide support on LPCs’ bills and effective ways maintain communication with and assistance. This includes in which to reduce electricity- LPCs, especially those which explanations on the nature of GST related costs by improving energy require further clarification on and the ways in which it impacts efficiency, in addition to issues how GST impacts their electricity upon the industry, as well as the related to the GST. bills, since it affects specific effects of the new tax regime on the billing components in different monthly electricity bills which LPCs Among those who shared their ways,” explains Fazlur Rahman. receive. knowledge and expertise were the Furthermore, he adds that these Senior General Manager of Customer efforts are in line with TNB’s A prime example of this was the Service at TNB’s Distribution commitment to ensure that session titled Seminar and Dialogue Division Ir Kamaliah Abdul information on electricity billing Session on the Goods and Services Kadir and the Assistant General layouts and components related to Tax (GST) with TNB’s Commercial Manager (Billing) at the Customer charges are consistently shared with and Industrial Customers, which Service Department’s Revenue the utility’s customers in a clear was held at the Matrade Exhibition Management Unit Selimin Othman, and transparent manner. and Convention Centre (MECC) as well as the General Manager of on 11 March 2015. Attended by TNB’s Commercial Management Better Billing more than 300 representatives of Unit Abu Bakar Ismail, TNB Energy large commercial and industrial Services representative Ahmad Aside from outreach programmes enterprises from across Malaysia, Nizam Hassan and the Assistant such as this, the utility has also this session featured numerous Director of the GST Division at the taken other steps to smoothen speakers and subject matter experts. RMCD Patmawaty Jubily. LPCs’ transition to the new system.

Volume 2 15 goods or services provided are categorised as zero rated, standard rated or exempt supplies. To satisfy this criterion, items are listed in a convenient two-column layout which provides at-a-glance identification of the billing components which are subject to GsT.

This modification was particularly vital. fazlur rahman explains, “Certain billing components such as connected load charges, power factor surcharges, power factor rebates, penalty charges and renewable energy fund contributions are not subject to GsT, as these transactions do not fall under the definition of taxable supplies. Thus, it is worth noting that the increase in LPCs’ electricity bills could amount to less than 6%, as these billing components are not affected by GsT.”

as a result of the comprehensive efforts that have been made to revise the structure of electricity bills which are rendered to LPCs, these bills are now able to serve the dual-purpose of a comprehensive tax invoice. This is indeed crucial, as it effectively means that LPCs are provided with the Primarily, TNB has revamped the well as the incorporation of TNB’s documentation necessary to file format of electricity bills which are GsT registration number, a tax claims for tax credits to offset rendered to LPCs, to comply with invoice serial number and the date the GsT-related costs attached the latest requirements prescribed of issuance of each invoice. to the electricity consumed, and by the rMCD. among these criteria pass these costs on to consumers is the inclusion of the term ‘Tax another important requirement or other companies in the supply Invoice’ in a prominent location, as is the distinction of whether the chain, rather than absorb them.

The process of adapting business processes and procedures to comply with the requirements set out for the implementation of GST may prove to be a daunting task for enterprise operators, and TNB has acknowledged these challenges, seeking to extend assistance and help make the transition as painless as possible. Having made the necessary changes to the format of electricity bills sent to its LPCs, TNB also continues to demonstrate its commitment in maintaining clear communication with its various stakeholders, to effectively discuss and resolve GST-related issues affecting both the utility and its customers. For any queries on the impact of GST on your electricity bill, kindly contact TNB Careline at 15454.

C.story GST2.indd 16 5/22/15 10:21 AM C.story GST2.indd 1 5/22/15 10:22 AM THE NEW TNB BILL FOR LARGE POWER CUSTOMERS CoVer feaTure

C.story GST2.indd 2 5/22/15 10:23 AM C.story GST2.indd 3 5/22/15 10:23 AM PrIMe PersPectIve IOI Mall PuchOng azMI YaakOb, MaIntenance & engIneerIng Manager

“Attending this session has enabled me to make clear distinctions between the billing components which are subject to GST, and those which are exempted from the tax, such as the 1.6% Renewable Energy Fund contribution.”

PrIMe PersPectIve “considering that the gst-related costs attached to the inputs which as one of the oldest and most well- are vital to our business processes ePsOn established commercial shopping can be claimed from the royal complexes located in Puchong, Malaysian customs Department PrecIsIOn selangor, IOI Mall has undoubtedly (rMcD), I think it is fair to say become one of the most iconic and that the impact of the gst on IOI easily-recognisable landmarks in Mall Puchong will be minimal,” he MalaYsIa the area. explains. “In fact, this may also shah rIzal mean that the impact of taxes on our however, establishing this operations will ultimately reduce, as harun, FacIlItY reputation has been no mean feat, compared to the sales and services requiring the mall’s operators to tax (sst) which is currently being MaIntenance continually elevate the shopping levied,” he adds. experience, in order to keep up with Manager consumers’ changing expectations. “Prior to this session, I had already attended some seminars and obtained even so, one constant requirement information on the implementation of that has not changed in the years the gst. however, having attended since its inauguration is the this session, I realised that there perpetual need for a stable, reliable are some issues which I may have and consistent supply of electricity, overlooked, particularly relating to in the volumes required by the the registration with the rMcD, as nearly-220 tenants which operate well as the need to ensure that the at the complex. account holder registered with tnb corresponds with the entity registered as explained by Maintenance & with the rMcD,” azmi reveals. engineering Manager azmi Yaakob, IOI Mall had already acknowledged In addition to gaining clarity and the impact of the 6% goods and crucial guidance on this matter, services tax (gst) on its business attending tnb’s seminar meant that processes, before he made the he was able to attain information decision to attend a recent seminar on the relevant procedures, as on the implementation of the gst, well as identify the tnb personnel which was organised by tenaga responsible for rendering assistance nasional berhad (tnb). in order to resolve issues such as this.

C.story GST2.indd 4 5/25/15 2:23 PM PrIMe PerSPeCtIVe CoVer feature

royaL MaLaySIa PoLICe GILBerd LayaNG, SuPerINteNdeNt

“This was the first seminar that I have attended on the implementation of the GST and it has enabled me to better differentiate between the various taxes and levies which have been put in place in Malaysia.”

With operational facilities located “While we have previously across the nation, there is no doubt been paying taxes under the that the stable and reliable supply government’s Sales and Services of electricity plays a pivotal role tax (SSt), the number of taxable in supporting the mission of the goods and services has expanded royal Malaysia Police, towards under the updated GSt scheme,” guaranteeing the safety and he adds. security of all Malaysians. for Superintendent Gilberd, one as such, Superintendent Gilberd of the most important facets of the Layang immediately recognised the new system is that it dramatically the necessary services which are value in attending one of tenaga reduces opportunities for essential to improving the quality National Berhad’s (tNB) most unethical entities to avert paying of life for all Malaysians,” he notes. recent engagement programmes taxes by choosing not to declare relating to the implementation of the their income. He also shares that the event 6% Goods and Services tax (GSt). organised by tNB was the first “aside from this, the GSt increases seminar on the implementation “from the explanations given, I the government’s revenue of GSt that he has had the understand that the implementation sources and widens the pool of opportunity to attend, finding it an of GSt comprises a restructure tax collection, meaning that it invaluable experience which was of the tax scheme,” he explains. will be better equipped to render both helpful and informative.

“After attending the TNB electronic equipment related to consideration for him is that GSt- seminar, I am more aware information and imaging, it should related costs can be recouped of the ways in which the come as no surprise that electricity by filing the relevant claims with implementation of GST supply is one of its most vital inputs. the royal Malaysian Customs department (rMCd). affects the electricity prices for facility Maintenance Manager which we will be facing.” Shah rizal Harun, this provided aside from this, the facility adequate impetus to attend one of Maintenance Manager also reveals Located at the Sri damansara tenaga Nasional Berhad’s (tNB) that by attending the seminar, he Industrial Park in Sungai Buloh, recent outreach programmes on was able to gain a clearer picture of Selangor, epson Precision Malaysia the Goods and Services tax (GSt), the impact that the new tax system is the local manufacturing subsidiary which was tailored to the utility’s will have on monthly electricity of the multinational Seiko epson large commercial and industrial bills. Corporation, which is headquartered customers. in the city of Suwa, in the Nagano Most importantly, he notes, the Prefecture of Japan. Sharing his view that the revamped electricity bills supplied implementation of the GSt by tNB provide all of the necessary Considering that the company comprises a positive development documentation that is required to specialises in the manufacture of for the country, Shah rizal file and secure input tax claims computer printers, as well as other explains that the most important from the rMCd.

Volume 2 17

C.story GST2.indd 17 5/25/15 2:21 PM ELECTRICITY TARIFF REbATE duE To ICpT Frequently Asked Questions

TL6_Special Features_Tariffs FAQ2.indd 18 5/21/15 5:52 PM speciAl FeATURe

n 11 February this year, the Ministry of Energy, Green Technology and Water (KeTTHA) approved rebates in electricity tariffs due to Imbalance Cost Pass OThrough (ICPT) in Peninsular Malaysia. The ICPT mechanism, which was implemented as part of the Incentive Based Regulation (IBR) framework, was first introduced on 1 January 2014.

In this Special Coverage, TEnAgALInk addresses some of the most commonly posed queries on the IBR and ICPT systems, and provides clarity on the rules and conditions governing the tariff rebates. Electricity Sales for FY2014 Customer Unit (GWh) RM million No of Customers Category Domestic 22,123 6,908 6,639,123 (21.60%) (18.17%) (82.00%) Commercial 35,353 15,885 1,379.796 (34.50%) (41.78) (17.02%) Industrial 43,026 14,700 25,557 (42.00%) (38.67%) (0.32%) WhAT is The icpT Mining 131 30 29 mechAnism? (0.13%) (0.08%) (0.0003%) imbalance cost pass Through Streetlight 1,348 321 62,672 (icpT) is a mechanism under (1.32%) (0.84%) (0.77%) the incentive Based Regulations Specific Agriculture 398 172 1,543 (iBR) framework allowing TnB, (0.39) (0.44%) (0.02) as a utility, to reflect the changes (either an increase or a reduction) Total 102,382 38,018 8,108,720 in fuel and other generation costs in the eletricity tariff every six The Fuel cost pass Through hOW is The icpT AmOUnT months. (FcpT) mechanism, which deTeRmined? captures variations in the cost of WhO is RespOnsiBle fuel sources (specifically piped The icpT amount is calculated FOR The meThOdOlOgy gas, lng and coal). This may based on the difference between OF icpT cAlcUlATiOn? occur as a result of changes in fuel the estimated cost of fuel and prices, available quantities and other generation cost, as compared As the regulatory agency responsible the energy generation mix, among to the actual baseline costs. over the domestic energy sector, the other factors. energy commission of malaysia WhAT is The icpT determines and implements the The generation specificc ost pass AmOUnT FROm 2014 calculation methodology for the Through (gscpT) mechanism Which is Being pAssed icpT mechanism, with its results captures variations in other On TO cUsTOmeRs? subject to government approval on generation-specific costs. This a semi-annual basis. includes changes in the costs As a result of the icpT mechanism, due to utilisation of distillate and a tariff rate rebate of 2.25 WhAT ARe The fuel oil, other generation costs sen/kWh has been applied to cOmpOnenTs OF The incurred under power purchase electricity customers. This rate icpT mechAnism? Agreements (ppA), service level took effect on 1 march 2015 Agreements (slA), fuel supply and will remain in place until There are two main components contracts, interconnection and 30 June 2015. This amounts to under the icpT mechanism: others. Rm727m.

Volume 2 19

TL6_Special Features_Tariffs FAQ2.indd 19 5/21/15 5:52 PM CuLTIvATING CAuTIoN Promoting safe Practices in Farms and Plantations s the main energy utility serving Peninsular Malaysia, Tenaga Nasional Berhad’s (TNB) primary concerns relate to ensuring the A efficiency and performance of electricity generation, transmission and distribution. Considering that its ultimate goal is to support Malaysia’s social and economic development, TNB also prioritises engagement with commercial energy customers, to educate and spread awareness on electrical safety.

In this issue, TENAGALINK sheds light on the measures that the utility has taken to ensure that those involved in the agricultural sector are aware of powerline safety efforts they can adopt for more secure farming processes.

NAtioNAl Focus and improve operational integrity. osman, initiatives such as this these efforts also serve the utility by enable tNB to engage directly with to accomplish best practices in minimising avoidable outages and stakeholders. “this allows the safety, tNB has conducted a series interruptions caused by inadvertent company to better understand the of seminars and other outreach mistakes. areas in which accidents commonly programmes with farm and occur, and offer specialised plantation owners and operators As explained by occupational guidance that is tailored to the throughout the country. this helps safety, Health and Environment unique challenges and difficulties reduce the occurrence of accidents (osHE) unit chief Mohd Farith being faced,” he reveals.

Safety First2.indd 20 5/21/15 5:59 PM sAFEtY FiRst

Safety Precautions Near TNB Powerlines

Right: Plantation managers and workers should be aware of the dangers of venturing near TNB powerlines.

Below: Whether working in a paddy field (left) or an oil palm plantation (right), the danger of injury or death as a result of electrical accidents always poses an 4.88 66 feet imminent threat. Acknowledging this, metres TNB actively engages with communities to promote industrial best practices when working in close proximity with powerlines.

3.68 metres

costlY lEssoN height of 4.88 metres, leaving just safety, compared to their larger 1.2 metres of clearance above the counterparts. one such area that has been machine when it passes beneath identified relates to farming works such cables. Among the specific practices which that involve the use of combine are encouraged by the utility, is paddy harvesting machines. the DEliVERiNg iNsigHt ensuring that oil palm harvesting last fatal accident involving paddy poles are never transported vertically, harvesters occurred on 1 February Aside from this, numerous accidents instead carried horizontally with 2006, when a teenager standing involving oil palm harvesting poles the help of another person, if on top of one such machine was have been recorded over the past necessary. Additionally, the pole severely electrocuted after coming two years, with the majority should be made of an insulating in contact with a 33kV electrical resulting in fatal injuries. in material such as wood or bamboo, distribution cable. Acting swiftly to light of this, the osHE unit has rather than a conducting material initiate an annual series of talks also made active efforts to improve such as aluminium. Meanwhile, on best practices relating to safety awareness on electricity safety among plantation managers should ensure – tNB has contributed towards smallholder plantation operators. that trees are never planted beneath the zero-accident rate which this is because these operators electrical lines, ensuring that an empty has been realised in the years have significantly less access to space of at least 66 feet wide is since then. information and advice on electricity maintained on either side of the line.

in order to ensure that incidents Ensuring that electricity supply is utilised in a safe and such as this do not recur, paddy harvesting operators are strongly secure manner is a responsibility that is shared by all advised never to stand on top of stakeholders in Malaysia’s energy sector, including paddy harvesting machines during individual and commercial electricity consumers. operations. this is particularly Despite that, Tenaga Nasional Berhad has taken bold important considering that paddy harvesting machines typically are steps to safeguard stakeholders at risk of injury, 3.68 metres in height and 33kV demonstrating its leadership and commitment to reduce distribution lines are deployed at a the occurrence of both fatal and non-fatal accidents.

Volume 2 21

Safety First2.indd 21 5/21/15 5:59 PM EnErgy EfficiEncy and EnErgy cost

contributed by Ir dr Mohamed Fuad Faisal, Power Quality & Energy Efficiency specialist, asset Management department, distribution division, tnB

ost customers agree that implementing Energy Efficiency M(EE) measures can optimise the consumption of electricity in factories. While EE programmes assist in accomplishing this, management support and knowledge on what must be done are required to successfully implement them.

EE programmes require cost, so the MakIng a dIstInctIon engineers responsible for EE must ensure that the effort or investment one important factor to note is put in the implementation of the that EE is not energy conservation. programmes result in real energy Where the latter means avoiding the efficiency and energy savings. In use of a service to save energy – such addition, the monetary savings due as not turning on an air conditioner to implementation of any EE plans or not using the vacuum cleaner – must be measurable. EE means accomplishing the same

Optimising Consumption4.indd 22 5/21/15 5:55 PM EnERgY EFFIcIEncY

level of tasks using less power. In general, this requires purchasing energy-efficient devices and appliances. For instance, replacing an incandescent lamp (which uses more energy) with an energy- efficient compact fluorescent lamp (cFL) is EE, whereas turning off the incandescent lamp is energy conservation.

some EE technology – for instance light emitting diode (LEd) lamps – may have a higher initial cost, but the long-term savings from the reduction in monthly charges make it worth adopting. In addition to cost savings, adopting and implementing EE programmes help reduce carbon dioxide emissions and damage to the environment. this is in line with the goal of the Malaysian government to reduce up to 40% of emission intensity of the gross domestic Product (gdP) by 2020. Compact fluorescent lamps (CFL), which use less power than incandescent light bulbs, should be used in homes, industries and factories for higher energy efficiency. EnERgY costs at the end of every month, the amount of electrical energy ENERGY COST FOR DOMESTIC CUSTOMERS consumed by the customer is recorded by energy meters. the Electrical energy (kWh) = Electrical power (kW) x duration (hours) cost of energy consumption is then Energy cost (RM) = Electrical energy (kWh) x cost per unit determined based on the existing energy tariff. this is the energy Example: cost. this tariff is applicable to all categories of customers. kWh consumption = 100 kWh Meanwhile, the term kilowatt- average cost per kWh (domestic) = RM0.3166/kWh hour (kWh) refers to the energy Energy cost = 100kWh x RM0.3166kWh = RM31.66 consumed by customers.

In essence, the impetus of energy-saving rests primarily with the consumers; starting with the selection of EE appliances for homes, offices and industries, to practicing energy-conserving procedures – such as turning-off equipment, devices and lights when not in use. These provide not only financial benefits in cost savings, but also contribute to the welfare of the environment and the advancement of national goals and the economy.

Volume 2 23

Optimising Consumption4.indd 23 5/21/15 5:55 PM continuous supply flow

Seen as an industrial undertaking of TNB Taps into massive scale during its construction in the 1920s, the Hydropower to Safeguard Chenderoh Power Station or Chenderoh Dam continues to Energy Security reliably serve the nation until today.

Inside TNB.indd 24 5/21/15 5:56 PM INSIDE TNB

o support the continued growth and development take place with greater prominence and frequency in Malaysia, of Malaysia, it is essential that adequate following the success of this Tsources of energy supply are maintained in an initial undertaking. “at present, efficient and sustainable manner. Considering that Peninsular Malaysia is home hydroelectric projects comprise some of the largest to three major hydropower schemes operated by TNB – each power generating facilities in the world – with some of which are made up of numerous even eclipsing the largest nuclear power plants – it individual dams with generating is only natural that Tenaga Nasional Berhad (TNB) units integrated within,” he reveals. has leveraged its expertise to manage and operate a These three hydroelectric variety of such projects in the country. schemes – which are located in Perak, Terengganu and cameron In this issue, tEnAGAlinK delves into the technology Highlands, Pahang – currently behind the principles of hydropower, as well as the account for a total of 21 individual dams with integrated power completed and prospective projects which put the plants. When combined, the total science to work for the benefit of all Malaysians. installed generation capacity of these projects is 1,911MW, which HyDroElEcTrIc HErITagE coNSIDEraBlE corresponds with 10.3% of TNB’s coNTrIBuTIoNS overall mix of electricity generation The history of Malaysia’s involvement sources. with hydropower energy predates as explained by the Senior general the birth of the country itself, Manager (asset Management) at In fact, these projects also have with construction on the first the generation Division of TNB a significant contribution towards large-scale project initiated by azman Talib, the development ensuring the electricity security the administration of the British of hydropower projects began to of the nation as a whole. according Federated Malay States in the early- 1920s. completed and officially opened by 1930, the chenderoh TNB’S GENERATION MIX IN 2014 Power Station or chenderoh Dam is located near Kuala Kangsar, Perak, and has five turbines which currently As one of the provide an installed generation components in TNB’s mix of capacity totalling 40.5 MW. generation sources, Coal hydropower plays 35.3% considered to be Peninsular a major role in Malaysia’s most ambitious industrial ensuring the stability and consistency undertaking of its time, chenderoh of supply. Dam was built at an estimated cost of gBP 3.5 million. aside from Hydro creating a reliable source of power 10.3% supply for tin mining operators Gas across the Kinta Valley, the dam was 53.8% also built specifically to manage surges in the water level of the Distillate Perak river, which had previously MFO 0.6% resulted in disastrous floods in the 0.04% state’s blossoming commercial and administrative capital of Ipoh.

Volume 2 25

Inside TNB.indd 25 5/21/15 5:56 PM to the Malaysia Energy Statistics Terengganu Hydropower Project, installed capacity of 150MW and Handbook 2014 – which was which is located in the Puah Forest 5.8MW respectively, with the produced by the Energy commission reserve of Hulu Terengganu. This entire project slated for completion of Malaysia and released last project comprises two generating in 2020. Meanwhile, the Telom year – hydropower projects such units with an installed capacity Hydropower Project has also been as these accounted for 7% of all of 125MW each in Puah and two proposed and is set to be located power sources contributing to generating units with an installed in Kuala lipis, Pahang, featuring a the generation of electricity in the capacity of 7.5MW each in Tembat, 132MW surface power station. country, in 2012, which is the last with the schedule for completion of year for which data is available. each unit ranging from September This project will also serve as a this year to april 2016. pilot study for the development of ExPaNDINg ScoPE a public acceptance model that will aside from this is the Tekai address the social and environmental at present, TNB is also embarking Hydropower Project, which is impact of hydropower stations. To on the development of a further located in Jerantut, Pahang and accomplish this, TNB is adopting four hydropower projects in consists of two cascading dams international guidelines published Peninsular Malaysia. First, the ulu with surface power stations. The by organisations such as the World Jelai Hydropower Project, which power stations at the upper and commission on Dams (WcD) is located in cameron Highlands, lower Tekai Dams will have an and the International Hydropower comprises two generating units with an installed capacity of 186MW each. Next is the Hulu NATURAL BASIN

A drainage basin, or a catchment area as it is more commonly known, is an expanse of land where a natural border of peaks around a river valley forms a basin, into which precipitate flows. This precipitate provides the river with a regular supply of water. In order to generate power, hydroelectric dams rely on a steady stream of water to spin their turbines. Therefore they are typically built on rivers that are liberally fed with water from their catchment areas.

Inside TNB.indd 26 5/21/15 5:56 PM INSIDE TNB

Association (IHA), with the final product anticipated to be used as a reference for the development of future hydropower projects in “Aside from driving Malaysia’s Malaysia. growth by supplementing the mix of electricity generation sources TNB also adheres to international operated by the TNB generation standards and best practices in dam design and management, namely Division, the nation’s hydroelectric by the International Commission plants are also pivotal to flood on Large Dams (ICOLD). These mitigation and the provision of practices include subjecting the hydropower dams to monthly domestic raw water supply.” (daily during the monsoon season) surveillance and monitoring of – TNB Generation Division the dam structure, six-monthly Senior General Manager (Asset dam surveillance inspections by Management) Azman Talib internal experts, comprehensive 10-yearly dam safety inspections by independent international experts, and controlled discharge of dam water during high water level situations.

DrIVINg SuSTAINABILITy

In addition to the direct benefits observed to serve a number of the dam and the regular inspections derived in the form of electricity auxiliary functions as well, such as and maintenance required, the generation, hydropower dams also facilitating the irrigation of nearby resource requirements imposed offer a slew of additional advantages, agricultural areas, while also by hydropower projects remain in terms of promoting socially potentially serving as an interesting among the lowest as compared to and environmentally-responsible and attractive tourist destination. other power generation technologies development. “Primarily, the and approaches. This is because construction of dams enables On the other hand, it is also worth electricity is generated from the operators to manage waterways in a noting that hydropower stations potential energy that is embodied more exact and deliberate manner, still provide one of the most in dammed river water, which is thus having the potential to assist in sustainable and environmentally- extracted when the water passes mitigating the detrimental impacts of friendly methods to generate energy. through the dam and drives the flooding,” notes the Senior general Apart from the initial construction of turbines it contains. Manager (Asset Management).

Aside from this, dams serve a Having first appeared in Malaysia nearly a century number of roles which are perhaps ago, the nation’s numerous hydroelectric projects just as critical, such as facilitating have firmly established themselves as prime the consistent provision of domestic raw water supply. This contributors to the country’s overall energy mix. is due to the reliability associated Apart from adding crucial diversity and reliability to with the availability of fresh water Malaysia’s range of energy sources, these facilities at hydropower stations, which also return several well-documented benefits to positions them as a popular location for water filtration and distribution society and the environment, thus enabling greater companies to establish operations. achievements in realising the nation’s sustainable Additionally, dams have been development goals.

Volume 2 27

Inside TNB.indd 27 5/25/15 2:18 PM Strategic Partnerships TNB Collaboration to Advance Biogas Development

urrently in its fourth year, the Biogas Asia Pacific Forum 2015 Cwas held on the 28 and 29 of April at the Sunway Pyramid Convention Centre. The event saw the convergence of biogas industry leaders and policy makers from across Asia Pacific, with more than 400 delegates from 27 countries present. The Biogas Asia Pacific Forum 2015, themed Commercial Integration of the Biogas Value Chain in Asia – Opportunities and Challenges for All, promoted partnership and knowledge sharing to strengthen Malaysia's position as a biogas hub, and encourage innovation, growth and commercialisation in the sector.

28 TENAGA Green

*Fiah Name Installation Address State Capacity Type Acual Date (kw) Design

Megagreen Energy Kilang Sawit Felcra Maran Simpang Jengka, Peti Surat Pahang 1000 BG1 2-Dec-14 Sdn Bhd 69, Jalan Maran 26500 Maran, Pahang Darul Makmur

Megagreen Energy Kilang Sawit Felcra Bukit Kepong, Labis, Johor 1000 BG1 2-Dec-14 Sdn Bhd 85300 Labis, Johor

Megagreen Energy Kilang Sawit Felcra Seberang Perak, Kampung Gajah, Perak 2000 BG1 2-Dec-14 Sdn Bhd 36800 Perak Tengah, Perak Darul Ridzuan

Megagreen Energy Kilang Sawit Felera Nasaruddin kilometer 37, Perak 1000 BG1 14-Nov-14 Sdn Bhd Jalan Tonoh Bota, 32600 Bota, perak Darul Ridzuan

Megagreen Energy Kilang Sawit Sungai Melikai KM9 Jalan Mersing Nitar, Johor 1000 BG1 14-Nov-14 Sdn Bhd Peti Surat 24, 86000 Mersing, Johor Darul Takzim

*Feed-in Approval Holders (FIAH)

Above: At the Biogas Asia Pacific As part of this initiative Ventures; and Megagreen and Forum 2015, TNB exchanged to advance and develop the Tenaga Nasional Berhad (TNB). documents with Megagreen for the development of five biogas plants biogas industry in the country, with a total output of 6MW to help four significant collaborations Represented by Ir Kamaliah Abdul electrify rural communities, reduce were highlighted at the Kadir, Senior General Manager carbon dioxide emissions and drive forum with the exchange of (Consumer Services) and Datin the adoption of sustainable energy in the country. documents, witnessed by Ruslinda Ibrahim, Senior Manager Datuk Dr Ewon Ebin (Science, (Communications);TNB's document Left: Biogas Asia Pacific Forum Technology and Innovation exchange with Megagreen Energy 2015 participants during a press Minister), Datuk Bung Moktar involved the exchange of five conference. From left to right: Dato' Dr Mohd Nazlee Kamal, Radin (Kinabatangan MP and biogas to power plants (with a total Malaysian Biotechnology Corporation Felcra Berhad Chairman), capacity of 6MW) in Federal Land (BiotechCorp) CEO; Dato' Sri Dr and Dato' Ir Dr Ali Askar Sher Consolidation and Rehabilitation Noorul Ainur Mohd Nur, Science, Mohamad (Sustainable Energy Authority (Felcra) mills. The Technology and Innovation Ministry Secretary General; Datuk Dr Ewon Development Authority COO). collaboration is part of the Ebin, Science, Technology and The partnerships were between Sustainable Energy Development Innovation Minister; Datuk Bung Gas Malaysia and Sime Authority Malaysia's (SEDA) Feed- Moktar Radin, Kinabatangan MP and Darby Offshore Engineering, in Tariff and Renewable Energy Felcra Berhad Chairman; and Vincent Choy, International Clean Energy Megagreen Energy and Felcra; Power Purchase Agreement Sustainability & Network (ICESN). Green & Smart and Felda Global (REPPA) initiative.

Bottom Left: TNB representatives Datin Ruslinda Ibrahim, Senior The aim of the strategic partnership project is to Manager of Communications (first provide electricity in the rural areas where the left) and Ir Kamaliah Abdul Kadir, Senior General Manager of Consumer mills are located – Kilang Sawit, Seberang Perak, Services (third left) flank Datuk Dr Sungai Melikai, Maran and Bukit Kepong – using Ewon Ebin, Science, Technology and Innovation Minister (second left) at biotechnology to convert palm oil mill effluent the Biogas Asia Pacific Forum 2015 (POME) and agro-waste into high-value added where TNB exchanges documents with Megagreen to advance the Green energy. With the ground survey of the development of biogas in the country. Also present were Datuk Bung Moktar biogas plant construction site completed and the Radin, Kinabatangan MP and Felcra REPPA signed, the collaboration will also reduce Berhad Chairman (second right) and Dato' Ir Dr Ali Askar Sher Mohamad, diesel subsidy and cut carbon dioxide pollution. Sustainable Energy Development All of which are in line with TNB’s commitment to Authority COO. sustainability in the country.

Volume 2 29 paperless Billing Using IT to Reduce Environmental Impact

30 TENAGA Green

s a major power utility both domestically and within the region – with an estimated 80,000 industrial customers which have Asignificant monthly power consumption qualifying them as Large Power Customers (LPCs) – Tenaga Nasional Berhad (TNB) prioritises the consistent elevation of service standards to meet rising needs. Simultaneously, the emergence of environmental concerns has seen the utility seeking out new ways to improve operational sustainability. TenagaLink examines the implementation of e-billing for all LPCs.

Existing Obstacles that there is no longer a need to supply the customer with a E-billing, or paperless billing, is physical bill. a measure initiated by TNB to overhaul the way bills are issued Even so, Senior General Manager to its LPCs. Originally, meters of Customer Service at TNB’s were manually read by meter Distribution Division Ir Kamaliah readers and the bills furnished Abdul Kadir said that for the at each address. However, this past two years, eligible LPCs have procedure occasionally resulted in been receiving both hard copy inaccuracies which were caused bills delivered by Pos Malaysia by human error. and electronic bills delivered via email, in order to facilitate the In an effort to facilitate a more transition process. As TNB places accurate billing system, TNB saw importance on ensuring that its potential in e-billing. This new IT systems and infrastructure method not only adds convenience benefit from continual development to the billing process, it helps and enhancement, she explains to alleviate repercussions to the that a number of new systems and environment as well, as it does processes had been implemented away with the need for a hard to support the e-billing mechanism. copy bill. Primarily, the conventional A Fresh Framework electromechanical meters at the majority of LPCs’ premises To effectively mitigate these issues have been replaced with digital and practically eliminate the meters. This enables the utility to possibility of human error, TNB conduct meter readings remotely. embarked on the installation of Following the collection of this digital meters at LPCs’ premises data, the information is relayed to in 2009, enabling the utility to a billing system and subsequently actively track electricity consumption an Output Management System figures in real-time, as well as (OMS). At this point, a bill is monitor and predict demand in generated in PDF format, which is order to adequately and reliably then sent to the email address of meet it. At present, nearly all of the customer. This process requires the utility’s 80,000 LPCs across the presence of communications Malaysia have been equipped equipment at the customers’ with this modern facility, meaning premises. If the equipment is

Volume 2 31 “apart from mitigating difficulties faced with the delivery of bills, we believe that the value-added services introduced through this initiative are enormously beneficial for the customer.”

– Senior General Manager of Customer Service at TNB’s Distribution Division Ir Kamaliah Abdul Kadir

For a larger image, turn to page 17 foldout

By migrating to digital bills and implementing its e-billing initiative, TNB has emphasised its commitment to saving the environment.

customer’s telecommunications capability to record and store the lacking, TNb will bear the cost of its service provider, which may be customer’s consumption data, installation, as part of the utility’s subject to outage or poor bandwidth before transmitting it when the continuous efforts to elevate the quality. As a result of this, there connection improves. In addition standard of service it provides. are challenges in maintaining the to overcoming this limitation, frequency of the reports returned TNb has consistently reduced the sAFEGUARDING THE sysTEm to the control centre at TNb. margin of error associated with other unforeseen difficulties since One drawback of this process is Fortunately, the smart meters the electronic billing of lPcs its dependence on the internet installed at lPcs’ premises using remote smart meter readings connection provided by the are also equipped with the first began in 2013, successfully

E-billing.indd 32 5/21/15 6:05 PM TENAGA GREEN

minimising the probability of best practices, this initiative failure to a mere 0.1 to 0.2%. aligns well with the utility’s overall efforts and programmes to improve In spite of this, Assistant General environmental sustainability. manager (billing) at the customer specifically, this e-billing initiative service Department’s Revenue has helped TNb accomplish management Unit selimin Othman significant environmental gains by assures that TNb will maintain the reducing the use of paper to produce apparatus necessary to conduct and distribute hard copy bills for wide-scale manual reading, as a its 80,000 lPcs. In addition, the fallback measure in the event of programme also mitigates natural a large or sustained connection resource use by making it outage. Additionally, he explains unnecessary for the utility to that lPcs will still be able to deploy additional staff to read liaise directly with the customer “The hard copy bills meters manually. This reduces fuel service representatives at the TNb consumption as well as the costs state or regional office nearest previously delivered associated with it. to them. through pos Malaysia were limited to a size selimin Othman also highlights RElIAbIlITy REAlIsED that there are other ways in of 4 inches by 12 which the environmental benefits “benchmarking against utilities and inches. as a result of offered by this programme can be other companies both domestically this, there were also maximised. “Primarily, when lPcs and abroad revealed that the limitations on the register the email address which will majority had already embarked receive TNb’s monthly bills, they on digital or email billing,” notes amount of information should list one that is accessible customer service senior General which they could by multiple users, especially manager Ir kamaliah, revealing the effectively convey.” the individuals responsible impetus behind the initiative. over financial and administrative matters such as this,” he said. by Aside from enabling the utility to – Assistant General Manager utilising this approach, lPcs can keep up with developments in the (Billing) at the Customer assist in promoting environmental international business landscape, Service Department’s Revenue sustainability, by minimising the this initiative is also part of TNb’s Management Unit Selimin Othman need to generate hard copy printouts efforts to ensure the accuracy and for internal circulation. reliability of the 30-day billing cycle, as all bills can now be generated and distributed at exactly As illustrated by the utility’s migration from 12:01 am on the first day of each manual meter readers and the posting of bills month. In addition, the updated system means that the utility is to the implementation of this e-billing policy, also provided with the ability to TNB is taking the latest step in its ongoing drive actively track consumption figures to improve the standard and sustainability of in real time. This allows TNb the services it provides while also eliminating to monitor and predict demand, thus enabling it to adequately meet irregularities which may prevent bills from being its customers' electricity demands. delivered in a timely manner. While the e-billing initiative was initially made available exclusively to ElEVATING sUsTAINAbIlITy LPCs, customers registered at the TNB e-services besides improving TNb’s portal, which is located at www.tnb.com.my, can compliance with the industry's also enjoy the service.

Volume 2 33

E-billing.indd 33 5/21/15 6:05 PM Helping Hands TNB Offers Flood Victims Emergency Relief

n late December last year, a spate of disastrous floods engulfed several states in Northern and Eastern Peninsular Malaysia, I displacing hundreds of thousands of people and resulting in damage to property and infrastructure costing billions of ringgit. These circumstances saw Tenaga Nasional Berhad (TNB) venture beyond its usual purview as the country’s main power utility, to initiate numerous immediate relief and recovery efforts, and render aid to those most affected by the tragedy.

Flood.indd 34 5/21/15 6:08 PM CORpORaTE REspONsIBIlITy

paRTNERINg FOR ThE pEOplE

as explained by the Deputy secretary general (Energy) at the Ministry of Energy, green “TNB staff worked Technology and Water (KeTTha) round the clock to Dato’ Dr Nadzri yahaya, the ensure that the daily relationship between TNB and the Malaysian government is unique routine of the flood and does not follow the model victims is minimally usually adopted by government- affected. This was a linked Companies (glCs). Rather than having a one-directional clear demonstration relationship in which priorities of TNB’s true strength are solely determined by the when everyone government, the energy utility often contributes its significant expected things to assets and capabilities to deliver fall apart.” innovative and unconventional solutions to ongoing national – Deputy Secretary General challenges. (Energy) at the Ministry of Energy, Green Technology according to Dato’ Dr Nadzri – who and Water (KeTTHA) was the former Director general Dato’ Dr Nadzri Yahaya of the National solid Waste Management Department – this was particularly evident when TNB elected to provide aid and

Fast Flood Aid

With the widespread flooding creating a crisis situation in which swift action was imperative, a number of steps were immediately initiated spanning all sectors of TNB’s operations:

80 mobile Over RM300,000 More than 2,000 and portable of daily necessities technical staff generators handed over to members mobilised deployed flood victims

Tabung Bantuan Satu Warga Kerja, Satu 12,000 kg of Kemanusiaan 1TNB Barang campaign launched, immediate relief established, allowing channelling over RM600,000 supplies in food and TNB staff to donate in goods and donations from basic necessities via salary deduction TNB offices throughout Malaysia to the areas affected

Volume 2 35

Flood.indd 35 5/21/15 6:08 PM NatioNal Effort

Weathering the Storm

“TNB staff went beyond their normal duties by innovatively using lorry batteries as a power source so that the displaced flood victims had access to lighting during night time.”

– Deputy Secretary General (Energy) at the Ministry of Energy, Green Technology and Water (KeTTHA) Dato’ Dr Nadzri Yahaya

Flood.indd 36 5/25/15 2:41 PM CorporaTe respoNsiBiliTy

In the wake of the heavy rainfall and floods which struck Northern and Eastern Peninsular Malaysia, Tenaga Nasional Berhad initiated comprehensive recovery efforts encompassing the states of Pahang, Kelantan, piVoTal player Terengganu and Perak. Dato’ Dr Nadzri reveals that in addition to working hand-in-hand relief to affected residents in with the Ministry, TNB was part the states of Kelantan, pahang, of a response group assembled by perak and Terengganu. This was KeTTHa. This group comprised in the wake of heavy rainfall of members from the National which preceded some of the worst security Council (MKN), the flooding in an estimated 30 years. Department of irrigation and “in addition to the monetary aid Drainage (Jps), the Ministry of that was offered, TNB exhibited Health (MoH), the National Water the willingness to get involved in services Commission (spaN) and many public engagement efforts, the Department of Water supply and the utility’s exemplary deeds (JBa), as well as other relevant as a corporate citizen need to be agencies and ministries. recognised,” he states. as part of this group, TNB To minimise the impact of the communicated with the MoH disaster on the daily routine of on the hospitals which urgently flood victims and ensure that relief required assistance, and spaN on centres, schools and hospitals were the water treatment plants which provided with continuous electricity required immediate electricity supply, TNB dedicated considerable supply reconnection. The utility personnel and equipment to these also provided the group with live efforts. aside from this, Dato’ updates on its electricity restoration Dr Nadzri recognises that the initiatives, as well as up-to-date tireless efforts of each individual reports on the reservoir levels TNB staff member – in terms of at its hydroelectric dams across working diligently to bring effective the nation, to curtail rumours of solutions to the people affected – excess water being released in were also integral to the success of an uncontrolled manner, thus the undertaking. contributing to the floods.

as one of the country’s most successful and productive organisations, tNB has long helped enable holistic nation building by guaranteeing the stable and reliable supply of electricity to industrial, commercial and domestic customers. through its recent efforts to give back by rendering aid in the aftermath of the East Coast floods, the utility has also shown itself to be an indispensable partner to the Malaysian government, in terms of collaboratively providing relief and assistance during disasters and other emergency situations.

Volume 2 37

Flood.indd 37 5/25/15 2:41 PM TNB launches an Costumer complains to TNB investigation IMPORTANCE OF

TNB sends an acknowledgement of POwER QuAlITy the complaint (within 3 days) Communicating with SEND TNB sends a report to the customer and Large Power Customers advocates PQ best practice (within 2 weeks) Contributed by Ir Dr Mohamed Fuad Faisal, Power Quality & Energy Efficiency Specialist, Asset Management Department, Distribution Division, TNB

istorically, most complaints received from Large Power Customers (LPCs) relate to power interruptions. But now, power quality (PQ) Hdisturbances such as voltage sags, harmonic distortion and voltage transients have caused more problems to sensitive industries than power reliability issues. Power quality disturbances usually affect certain equipment and not all equipment in a plant. Because of this, PQ can be as big a problem to LPCs as power interruption. Therefore, TNB has increased its focus on dealing with PQ issues to ensure prime customer satisfaction.

Power Quality.indd 38 5/22/15 10:17 AM EXPERT TALK

TNB launches an Costumer complains to TNB investigation

TNB sends an acknowledgement of the complaint (within 3 days) SEND

TNB sends a report to the customer and advocates PQ best practice (within 2 weeks)

When a Large Power Customer faces a power quality issue, their complaint goes through an internal TNB process to ensure that the customer is informed of the cause of the problem as soon as possible.

RELEVANT REQuIREMENT electrical and electronic equipment operations, the prime customer needs to operate with a perfect, sinusoidal to immediately know the cause of Years ago, a brief voltage fluctuation voltage waveform in order to the equipment failure, whether it is or voltage sag was not considered achieve continuous operation. due to an internal equipment failure a problem, but today’s solid- This condition is called the PQ or an external event or voltage sag. state devices are very sensitive requirement. If the cause is an external event, to power system fluctuations. It customers can immediately is this vulnerability of modern STRENgTHENINg RELATIoNS restart their machines and resume technology that has brought an operations. If the cause is unknown, increased awareness of PQ, which This sharing of information on PQ customers will need to spend time is a reality of life that has always events – especially voltage sags – troubleshooting their machines to been present. Nowadays, it has is very important. If any critical find out the actual cause. This can become a requirement for sensitive equipment suddenly trips during be a time consuming process.

TNB regularly conducts engagement programmes with LPCs such as semiconductor manufacturing company Infineon Technologies (Malaysia), to improve the standard of relations and enable the utility to better understand the needs of customers.

Volume 2 39

Power Quality.indd 39 5/22/15 10:17 AM EXPERT TALK

The sharing of relevant information on PQ forms a very important element in guaranteeing customer satisfaction. At TNB, the management of customer complaints relating to PQ disturbances follows an internal engineering procedure (ENGR 750-31). In line with this procedure, all complaints from customers on PQ-related issues must be recorded, attended to by engineers in the respective area/state, and reports must subsequently be submitted to the customers.

Reference Number: TNB (B)/KJLO/PK 20/3/24

TNB POWER QUALITY DISTURBANCE REPORT TO CUSTOMER Top: Upon receiving complaints on matters relating to power quality and voltage sags, staff No. Item Report from the respective local or state TNB office 1 Area and State are often able to provide tailored power quality Area State consultancy and servicing at the LPC’s facility. PK (Subang Jaya) Selangor Left: A sample of TNB's power quality disturbance report that is 2 Date and Time Date Time provided to the customer. of PQ Event 14 Apr 2015 1:38:46.240

3 Type of PQ Event Sag Sharing information on 4 Magnitude and Duration Nominal Voltage Monitored (kV) - of PQ Event the Power Quality is one Phases Voltage (%) Duration (ms) of the major initiatives by R-N 93 79 TNB. The information will Y-N 92 79

B-N 73 79 include types and causes of PQ disturbances, EMC 5 EMC Assessment Compliance for PQ Event Standard assessment and mitigation (Yes or No) actions. TNB also conducts SEMI F47-0706 Yes IEC 61000-4-34 (Class 1) No frequent discussions with

IEC 61000-4-34 (Class 3) Yes large power customers on issues related to PQ as well as 6 Source of PQ Event Transmission Network other matters. This proactive 7 Cause of PQ Event Lightning communication on PQ events 8 TNB’s Corrective Action [Overhead] Repair Tower Footing Resistance Performed and Timeline between TNB and customers has enabled TNB to better 9 Recommended Action Customer must ensure all critical loads are properly understand the needs of its Plan to be Performed immuned from voltage sags. Standard to refer is by Customer IEC 61000-4-34 (Class 1 & Class 3). commercial and industrial customers.

Power Quality.indd 40 5/25/15 3:06 PM PERLIS

KELANTAN KEDAH

TNB STATE PULAU PINANG OFFICES TERENGGANU PERAK

Wilayah Persekutuan Kuala Lumpur KUALA LUMPUR

Pengurus Besar Negeri SELANGOR PAHANG Bahagian Pembahagian PUTRAJAYA/ NEGERI Tenaga Nasional Berhad CYBERJAYA SEMBILAN Aras 11, Wisma TNB Peti Surat 11050 MELAKA 50990 Kuala Lumpur Tel : 03 – 6250 6030 Fax : 03 – 6250 6500 JOHOR

Selangor Darul Ehsan Wilayah Persekutuan Pahang Darul Makmur Pengurus Besar Negeri Putrajaya/Cyberjaya Pengurus Besar Negeri Bahagian Pembahagian Pengurus Besar Negeri Bahagian Pembahagian Tenaga Nasional Berhad Bahagian Pembahagian Tenaga Nasional Berhad Wisma TNB Subang Jaya Tenaga Nasional Berhad Aras 13, Wisma TNB Jln USJ 10/1A, USJ 10 Blok 4802-0-7, Jalan Perdana Lot 14, Seksyen 19 47620 Subang Jaya CBD Perdana, 63000 Cyberjaya Jln Gambut, 25000 Kuantan Tel : 03 – 8022 9400 Tel : 03 – 8886 6888 Tel : 09 – 515 5555 Fax : 03 – 8022 9554 Fax : 03 – 8886 6933 Fax : 09 – 515 5656

Johor Darul Takzim Kelantan Darul Naim Pengurus Besar Negeri Pengurus Besar Negeri Perak Darul Ridzuan Bahagian Pembahagian Bahagian Pembahagian Pengurus Besar Negeri Tenaga Nasional Berhad Tenaga Nasional Berhad Bahagian Pembahagian Aras 14, Wisma TNB Aras 5, Wisma TNB Tenaga Nasional Berhad Jln Yahya Awal Jln Tok Hakim Aras 2, Wisma TNB 80100 Johor Bahru 15000 Kota Bharu Jalan Lahat, 30200 Ipoh Tel : 07 – 219 2000 Tel : 09 – 745 1100 Tel : 05 – 208 8000 Fax : 07 – 223 1425 Fax : 09 – 747 3611 Fax : 05 – 254 5199

Kedah Darul Aman Pulau Pinang Negeri Sembilan Darul Khusus Pengurus Besar Negeri Pengurus Besar Negeri Pengurus Besar Negeri Bahagian Pembahagian Bahagian Pembahagian Bahagian Pembahagian Tenaga Nasional Berhad Tenaga Nasional Berhad Tenaga Nasional Berhad Aras 8, Wisma TNB Aras 17, Wisma TNB Aras 5, Wisma TNB 887 Jalan Sultan Badlishah 30 Jalan Anson Jalan Dato Bandar Tunggal 05990 Alor Setar 10400 Pulau Pinang 70990 Seremban Tel : 04 – 774 5600 Tel : 04 – 222 4000 Tel : 06 – 768 3400 Fax : 04 – 732 4185 Fax : 04 – 227 3110 Fax : 06 – 764 4271

Melaka Perlis Indera Kayangan Terengganu Darul Iman Pengurus Besar Negeri Pengurus Besar Negeri Pengurus Besar Negeri Bahagian Pembahagian Bahagian Pembahagian Bahagian Pembahagian Tenaga Nasional Berhad Tenaga Nasional Berhad Tenaga Nasional Berhad Aras M, Jln Banda Kaba Wisma TNB, Bulatan Jubli Emas Jln Cherong Lanjut 75990 Melaka 01000 Kangar 20673 Kuala Terengganu Tel : 06 – 282 8544 Tel : 04 – 976 0021 Tel : 09 – 622 3022 Fax : 06 – 282 6460 Fax : 04 – 976 1921 Fax : 09 – 624 3896

Volume 2 41

Directory.indd 41 5/21/15 6:12 PM Nation Building_TLINK SIZE.pdf 1 5/20/15 10:28 AM