KUALA LUMPUR (Sept 10): The Energy Commission CEO Datuk Ahmad Fauzi Hasan has denied allegations that Malaysia is on the brink of a power supply shortage, saying the country has put in place contingency plans to mitigate risks arising from delays in Malakoff Corp Bhd's upcoming power plant.

"The risks of a delay is for the short term only and in this time, we have put in contingency plans such as having the options extended in existing plants to supply electricity," he said after the Asean Power Week Conference and Expo.

Currently, Ahmad Fauzi said Peninsular Malaysia has a reserve margin -- or the difference between the capacity and demand -- of 25%. This, however, includes the supply from hydroelectric plants, which operate only during peak periods.

"There is about 2,000 MW of hydroelectric capacity today. But even after taking that out of the equation, there is enough supply to meet the current demand," he said.

The Edge Malaysia this week reported that Malakoff's 1,000 MW power plant is set to face a delay of six months to a year.