8/8/2001(NSTP) - DEWAN RAKYAT - AN Energy Commissioner has beenestablished to strengthen and increase the effectiveness of the monitoringsystem on the energy sector.

Energy, Telecommunication and Post parliamentray secretary Chia Kwang Chyesaid the power of the commissioner would be widen to include monitoringthe economy of the sector.

The Government, he said, had appointed seven member of the commissionerincluding the chairman, while another two were ordinary members torepresent the government - the Domestic Trade and Consumer AffairsMinistry secretary-general and Works Ministry's director-general.

"The chairman and government members will be in the board for a period ofthree years while non-government for two years. There will not be anyrepresentative from Sarawak as the scope of the commission does notinclude the state."

Chia said this when winding up to points raised by MPs debating theSupplementary Supply (2001) Bill 2001 at the committee stage for theministry.

He said the Government had appointed the chairman and the members sinceMay 1 this year and the Commission was expected to be fully operational bythe end of this year.

Chia explained that the RM7.8 million grant would enable the Commission tobe launch according to its initial plan.

"The grant will be use as emolument payments to the members of theCommission, services payment like office rental, utilities and to enablethe commission to buy computers and other office equipment.

On Independent power producers, he said, the IPP projects was introducedwhen the country was facing an energy crisis and there were series ofblack-outs incidents in the country in 1997.

"That was the reason why we introduced the concept. However, the Cabinethad decided that if there are any IPP projects to be implemented, suchprojects must go through tender and bidding not through direct negotiationas practised before this."

The Government, he said, was of the opinion that the sector would be morecompetitive if any IPP projects were implemented through bidding ortender.

"We hope that the tariff will be more condusive and consumers will be ableto enjoy a lower cost of energy."

On energy cost imposed to YTL corporation, he said, YTL was among thefirst IPP.

"The price was agreed upon through negotiations and agreement had beensigned between YTL and Tenaga Nasional Berhad. However, we are confidentthat both parties can negotiate again on the price."

On Tenaga Nasional's study to replace gas with crude palm oil, he said,study conducted by Tenaga Nasional was very encouraging.

"We had conducted a study and a test at our plant in Prai, however, weneed to conduct further tests to ensure the real cost."