ipp vs tnb

i. What is the issue that is being addressed? The issue pointed out from the Rakyat Times (2014) article is there really need to have Independent Power Producers (IPPs) besides the main power producer in Malaysia known as Tenaga National Bhd (TNB). Based on the article the government and TNB would profit if IPP contract is terminated. Among the reasons why TNB does not enjoy such benefits is because they buy energy from IPPs at a higher price and sell it to the people at a much lower price. To critiques the issue we need to look at the history of the agreement between TNB and IPP is by agreement called Power Producer Agreement (PPA). Based on the other article, Kinibiz (2014) written by Khairie Hisham, the agreement happen on September 29, 1992, a total power blackout swamped the nation for several days. This landmark incident glimmered a privatisation of the power generation sector that broke the dawn for IPPs in Malaysia. In the process, however, TNB’s monopoly of the power generation sector was strip down by former Prime Minister Tun Dr Mahathir Mohamad as YTL Power was awarded the nation’s first IPP licence in 1993. At that time, with lack of technology as power producer by TNB evidence in Berita Semasa article (2011), Tun Dr Mahathir Mohamad blamed TNB's monopoly in electricity generation in the country on problems that was occurred in 1992 which make IPPs has been given the role in the country's energy industry.

ii. In what way is the issue significant to the body of finance knowledge?
Tenaga Nasional Bhd(TNB)
To relate the issue is based on the agreement. From the KL Today article that does not provide direct economic element, TNB is required to purchase power from IPPs at a price higher than the cost of generating their own, in which case YTL Power Generation Sdn. Ltd about 25 percent. They also have to pay for unused capacity, energy that is not needed.
To mention the way it effected TNB, we can know that for energy that being wasted is also