Tenaga Nasional Bhd has reiterated its call to the government to make a decision soon on the gas supply security policy to resolve the ongoing gas crisis in the country and prevent the utility firm from facing a cash crunch.

President and chief executive officer Che Khalib Mohamad Noh said a quick decision was vital as the cash crunch could come very soon with TNB spending extra for alternative fuels for power generation due to gas shortage.

Due to gas curtailment exercise by Petronas, TNB has to buy fuel distillates which cost five times more than gas to keep generating electricity and this was exerting a steep financial burden on the company, he told reporters at the TNB Deepavali Open House today.

As of October this year, TNB spent about an additional RM3 billion to pay for the alternative fuel, he said, adding that the amount would keep on increasing.

"Once we have a general policy agreed to by all the relevant parties, then we can move on by using that policy (and) we hope the decision can come before the cash crunch.

"We are currently negotiating with all the relevant parties."

"Pemandu (the Performance Management and Delivery Unit) is coordinating, they have met us, they have met Petronas and everybody have their own views and reasons for whatever compensation that we have been asking for from the government," he added.

Present at the function was TNB chairmperson Leo Moggie, Human Resources Minister Dr S Subramaniam and Federal Territories and Urban Well-Being Minister Raja Nong Chik Raja Zainal Abidin.

- Bernama