TNB ordered to pay Malakoff unit $11.6M

TNB has been ordered to pay SEV US$11.6 million , the latter claimed as outstanding capacity payments.
Segari Energy Ventures Bhd or SEV is a subsidiary of Malakoff Corp. Berhad.

MMC Corp, which owns a 51 per cent stake in Malakoff, told Bursa Malaysia that the Kuala Lumpur Regional Centre for Arbitration had also allowed Tenaga Nasional Berhad's counterclaim for energy overpayments amounting to US$5.6 million; hence TNB would pay SEV US$5.97 million, the difference between the sums.

SEV alleged that TNB had wrongfully deducted US$13.89 million from available capacity payments due and payable to SEV for October 2005, August 2006 and February 2008.

TNB, however, said the sum was legally deducted in accordance with the terms of the power purchase agreement between TNB and SEV, citing the latter's failure to comply with dispatch instructions. Thus TNB filed a counterclaim for a declaration that the US$13.89 million had been lawfully deducted.