56 Performance Revi ew 02 Sect ion Ranhi ll Ut i l i t i es Berhad RIVER WATER POLLUTION AND WATER THEFT The number of river water pollution incidents have decreased significantly in FY2022 due to the effectiveness of joint enforcement by Ranhill SAJ and Badan Kawalselia Air Johor (“BAKAJ”). The installation of the Pollution Removal System (“PRS”) in Simpang Renggam WTP has also been effective in removing pollutants from river water and preventing the need to shutdown WTPs. Given the significant impacts is caused by pollution incidents on the water system, society and businesses, not forgetting commercial losses and other hardships and difficulties, the full weight of the law should be imposed on offenders. This would serve as a deterrent that prevents more incidents in the future. In FY2022, the number of complaints received on water theft incidents as defined in Section 89 and Section 123 of the Water Services Industry Act 2006 (Act 655) has decreased by 16.7% year-on-year to 2,895 reported cases (FY2021:3,642). In FY2022, Ranhill SAJ received favourable judgments on 904 cases with a total of RM1.2 million imposed on offenders. After more than four years, Ranhill SAJ’s Enforcement Team is well experienced and sufficiently trained to carry out enforcement activities. RISKS / THREATS MITIGATION PLANS / MEASURES Raw water contamination and pollution Legal action on polluters: Apart from reporting to regulators on pollution activities. Ranhill SAJ has filed lawsuits against polluters with several being brought to court and imposed fines and other punitive measures, including compensating Ranhill SAJ for losses incurred. Shortage of raw water quantity Construction of Layang 2 (Phase I) Raw Water Supply Scheme from Sungai Sedili Besar to Seluyut Dam and development of alternative water sources such as River Bank filtration projects at Lok Heng, Kota Tinggi. Discontinuation of water operator license renewal from SPAN and Raw Water Abstraction License from BAKAJ Adherence to Water Service Industry Act, 2006, SPAN KPI and Special Licence Conditions. MANAGEMENT DI SCUSS ION & ANALYS I S RISKS / THREATS MITIGATION PLANS / MEASURES Lack of New Power Plant Construction There were no major operational issues such as reduced performance or total shutdown of the two plants. RPI maintained the availability above 87% and RPII above 94% as per the requirement in the Power Purchase Agreement (PPA) with Sabah Electricity Sdn Bhd (SESB). Operational Risks In mitigating operational risks, the Group conducts regular inspection to detect operational irregularities through 24-hour online monitoring of operations via the plant Distribution Control System. Furthermore, sufficient spare parts are stored for any eventuality while our power operations can also leverage on the support services of original equipment manufacturer companies. Emphasis is also placed on continuous training for maintenance staff, towards improving troubleshooting skills and capabilities, especially in addressing critical breakdown of power plant equipment. In the event of pandemic, Emergency Response Plan (ERP) will be executed to ensure continuous operations of both plants. ENERGY SECTOR
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