62 Sabah Electricity Sdn
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SABAH ELECTRICITY SDN BHD During the year, Sabah Electricity Sdn Bhd (SESB) focused its activities to improve the quality of electricity supply in the state. A number of projects were implemented to strengthen the supply as well as the transmission system in Sabah and the Federal Territory of Labuan. As a result, the number of interruptions recorded in 2003 was 1,733, down from 1,853 in 2002. SESB Generation The generation system of SESB is currently firm with an installed capacity of 758MW (including from CORPORATE REPORT 2003 REPORT CORPORATE five IPPs). During the year under review, the total units generated registered 2,940,360MWh with an Energy Generation Mix described below. Oil (SESB) 29% Tenaga Nasional Berhad Tenaga Gas (IPP) 25% 62 Hydro (SESB) 15% Gas (SESB) 15% Oil (IPP) 16% Several generation projects that had been identified for implementation such as the installation of additional steam turbines (conversion to combine cycle mode) in Patau-Patau Power Station and the construction of the Kayumadang open-cycle turbine, were deliberated. The company decided to replace them with the Sepangar Bay Corporation (SBPC) IPP Project. SESB had a series of negotiations with SBPC and decided to focus on the implementation of a 100MW Combine Cycle. The agreement on the best acceptable tariff has been approved. SESB has also initiated negotiations for Renewable Energy Purchase Agreement (REPA) with SREP Entrepreneurs. Two agreements have been signed. The first was with Bio-Energy Sdn Bhd (10MW) in Kunak in October 2002, and the second was with Kalansa Energy Corporation Sdn Bhd (5MW) in Beluran in August 2003. Meanwhile, the Patau-Patau Power Station was awarded the ISO 9001:2000 certification in September 2002. 63 Tenaga Nasional Berhad CORPORATE REPORT 2003 SESB Transmission During the year, SESB continued the implementation of the Northern Transmission Grid Project that included the extension of the West Coast Grid connecting the main stations in the northern part of Sabah, namely Kudat, Kota Belud and Kota Marudu through a 170 km transmission line. The objective of this project is to reduce the operational cost in the northern region where these power stations will halt operations by early 2004. SESB also undertook the East-Coast Transmission Grid Project to connect the IPP stations to SESB’s main power stations in the east coast namely Sandakan, Lahad Datu, Semporna and Tawau through a 327 km transmission line. It was completed in August 2003 and helped reduce operation costs in this region. The Lahad Datu Power Station and Semporna Power Station are expected to stop operations. The East-West Interconnection Project connects the East-Coast Grid and West-Coast Grid through a 250 km transmission line. Here, the overall operational cost will be further reduced when the transfer and utilisation of cheaper source of energy from the west coast of Sabah takes effect. The above projects were financed under the Seventh and Eighth Malaysia Plan. With the completion of the projects, SESB would enhance its services to the people especially the industrial and commercial sectors in the east-coast and northern region of Sabah. SESB Distribution The most important programme undertaken by the SESB Distribution Division during the financial year 2003 was the implementation of the T7 strategy. The key initiatives were:- CORPORATE REPORT 2003 REPORT CORPORATE Reduce distribution system loss Improve supply reliability @ Quality Improve revenue collection A new disconnection system as a credit control device had been implemented. Several customers including Maxis and Celcom have been incorporated in the bulk payment system. Tenaga Nasional Berhad Tenaga 64 The total number of customers in Sabah according to tariff is 318,585 and recorded as follows:- Tariff Nos. % DM 265,795 83 300,000 CM1 47,472 15 265,795 CM2 78 0 250,000 ID1 2,479 1 200,000 ID2 119 0 PL 2,672 1 150,000 100,000 50,000 47,472 2,479 2,672 78 0 119 PL ID1 ID2 DM CM2 CM1 Energy sold in GWh according to tariff is 2,290.42 and recorded as follows:- Tariff Energy Sold(GWh) % DM 708.88 31 800 CM1 668.42 29 708.88 CM2 201.88 9 700 668.42 ID1 173.18 8 600 505.58 ID2 505.58 22 500 PL 32.48 1 400 300 65 201.88 200 173.18 100 32.48 0 PL ID1 ID2 DM CM1 CM2 Energy sold according to tariff is RM581,299,533 as follows:- 2003 REPORT CORPORATE Tariff Energy Sold (RM) DM 160,718,620 CM1 196,830,664 196,830,664 CM2 56,795,692 200,000,000 Nasional Berhad Tenaga ID1 47,529,393 160,718,620 ID2 109,765,857 150,000,000 PL 9,659,307 109,765,857 100,000,000 56,795,692 47,529,393 50,000,000 9,659,307 0 PL ID1 ID2 DM CM1 CM2 EDUCATION & RESEARCH DIVISION Introduction During the year, the Education and Research Division emphasised on the effort to make education and learning, a major organisational process and business, and its contribution to the national agenda whilst turning education into a major revenue earner and a source for professional resources. The synergistic relationship between UNITEN and TNB Research Sdn Bhd (TNBR) in particular provided a useful platform for education and knowledge advancement through research while Tenaga Nasional CORPORATE REPORT 2003 REPORT CORPORATE Foundation rendered an important contribution by way of financial assistance to deserving students. The long term strategic reviews currently undertaken for UNITEN are among others, an attempt to put in place a better strategic fit where UNITEN’s maturity into a world class engineering university and centre of excellence, will provide the needed alignment and higher educational values as seen from the quality of its programmes, faculty resources, facilities and graduates. The division through its Tenaga Nasional Berhad Tenaga coordinating activities, has laid down the mechanism where renewal and change become the ingredients 66 for continuous improvement in Universiti Tenaga Nasional. Universiti Tenaga Nasional Universiti Tenaga Nasional created history when it successfully implemented the Quality System that met the MS 9001:2000 Quality Management Systems for support services and was awarded the Quality System Registration Certificate by SIRIM on 20 June 2003. At the Private Education Night 2003 held on 9 June 2003, the university won two awards from the Minister of Education for “Excellence in Research and Development R&D” and for the highest number of courses accredited by the National Accreditation Board (LAN). These accolades from external bodies have given recognition to Universiti Tenaga Nasional as an excellent university in Malaysia. The academic programmes offered at Universiti Tenaga Nasional have also been given recognition by professional bodies. Its Bachelor of Engineering degrees are recognised by the Board of Engineers, Malaysia (BEM) and the Institution of Engineers Malaysia (IEM) whilst the Bachelor of Accounting degree is recognised by the Malaysian Institute of Accountants (MIA). At the international level, the accounting degree is recognised by the Association of Certified Chartered Accountants (ACCA), Chartered Institute of Management Accountants (CIMA) and the Institute of Chartered Secretaries and Administrators (ICSA) – all from the United Kingdom. Effort is being made to also gain recognition from the Chartered Public Accountants, Australia (CPA Australia). Universiti Tenaga Nasional has successfully sealed a Memorandum of Understanding (MoU) with several prestigious foreign universities on cooperation/collaboration for mutual benefit. The universities are the University of Strathclyde, University of Southampton, Lancaster University, University of Liverpool, University of Sussex, University of Newcastle, University of Stirling and the University of Brighton – all from the United Kingdom. Universiti Tenaga Nasional continues to attract students for higher education in the fields of engineering, information technology, business management and accountancy. As at August 2003, the total number of students was 6,851 of which 5,520 students are in the main campus in Bangi and 1,331 students at the Muadzam Shah Campus in Pahang. The latter number was achieved when the accommodation infrastructure for 1,000 students was completed in May/June 2003. 67 Tenaga Nasional Berhad CORPORATE REPORT 2003 At the convocation ceremony from 16-17 August 2003, 1,363 graduates received their diploma and bachelor degrees – 771 graduates in the fields of engineering and information technology as well as 575 graduates in business management and accountancy. 17 graduates were awarded postgraduate Master degrees. More than 11,000 applications have been received from potential students wishing to gain admission into Universiti Tenaga Nasional. However, only 1,984 students were successfully accepted. Tenaga Nasional Foundation Annually, a few high achievers of SPM are given the opportunity to study overseas, selected according to the competitive criterias that have been set by the Foundation. These students undertake their pre-university studies locally before pursuing their first year overseas. The Tenaga Nasional Foundation is pleased to mention that some of these scholars were awarded with notable prestigious awards, eg. the Tony Davies Memorial Prize, the National Grid Company Prize and the Electronic Engineering Prize for the Shell Technology Enterprise Programme (STEP). In terms of welfare funding, the Tenaga Nasional Foundation has achieved success in organising the Kem Remaja Bestari 2003, an annual event comprising more than 1,000 students across the peninsula. CORPORATE REPORT 2003 REPORT CORPORATE This camp gives them further insights on study skills, time management and other tips on how to be successful in their study life. The Tenaga Nasional Foundation is also continuing the establishment and operation of nurseries and kindergartens at various workplaces of TNB, to serve the need of young mothers, especially those who are TNB employees. The Tenaga Nasional Foundation is currently funding and monitoring the running of nurseries and kindergartens at 19 workplaces (catering to 717 children) and 35 tuition centres (catering to 1,987 students).