Malaysia to renegotiate IPP power contracts

KUALA LUMPUR, Feb 11 (Reuters) - Malaysia's government said on Wednesday that it would ask the Energy Commission to renegotiate contracts between national electricity company Tenaga (TENA.KL) and independent power producers.

"We have just go the green light," Energy, Water and Communications Minister Shaziman Abu Mansoor told a press conference in response to an inquiry about the contracts.

Tenaga has called for the contracts to be reviewed.

Independent power producers such as YTL Power (YTLP.KL), Sime Darby (SIME.KL), Tanjong Plc (TJPL.KL) and MRCB (MYRS.KL) have just fought off proposals from the Malaysian government for a windfall tax.

That proposed tax had raised concerns amoung ratings agencies over the IPPs debt servicing ability.

(Reporting by Razak Ahmad; Editing by David Chance)