News: Parties disagree on tariff for power purchase agreement

KUCHING: Sarawak Energy Berhad (SEB) yesterday revealed that Rio Tinto Aluminium (M) Sdn Bhd (RTA) had pulled out from the pact on the proposed aluminium smelter plant at Samalaju Industrial Park as both parties could not agree on the price of electricity.

Its chief executive officer Torstein Dale Sjøtveit said: “SEB has negotiated with Rio Tinto/Salco (Sarawak Aluminium Company) in good faith. We are disappointed to be unable to find a mutually acceptable solution, but the parties’ positions on the price of electricity were just too far apart.”

SEB said there was strong demand for Sarawak’s energy and despite that Sarawak Corridor of Renewable Energy (SCORE) agenda was forging ahead despite the inability to reach agreement with Rio Tinto/Salco.

The new aluminium smelter of another company, Press Metal, on track to commence operation by June this year, will take 480 megawatts.

The construction of other plants is advanced.

The strength of customer demand proves that Sarawak’s renewable hydroelectric power is valuable to energy-intensive industries from around the globe.

“While we regret that an agreement was not possible with Rio Tinto/Salco, I am certain that all the power that could have been allocated to Rio Tinto/Salco will find another willing buyer,” he said.

SEB is a holding company that is 100 per cent owned by the state government of Sarawak. It has, for more than 70 years, provided electricity to more than 500,000 customers in Sarawak through wholly-owned subsidiary, Sesco.

The state government has given SEB a mandate to develop the state’s abundant energy resources to benefit Sarawak’s community.

SEB, which has plans to develop up to 10 new power stations and supporting transmission infrastructure, will become the leading producer of renewable energy in South East Asia. This is the foundation of the government’s broader economic development strategy for SCORE.


Read more: http://www.theborneopost.com/2012/03/29/parties-disagree-on-tariff-for-power-purchase-agreement/#ixzz1qSxR2LTZ