By MARK RAO / Pic By MUHD AMIN NAHARUL
Tenaga Nasional Bhd’s (TNB) average base tariff will remain unchanged at 39.45 sen per kilowatt hour (kWh) under the Imbalance Cost Pass-Through (ICPT) mechanism until year-end.
Malaysia’s largest utility provider said the government has approved the continued implementation of the ICPT via the Energy Commission (EC) from July 1 to Dec 31, 2018.
“Due to the higher fuel and generation costs for the period of Jan 1 to June 30, 2018, the additional cost of RM698.19 million, or 1.35 sen per kWh ICPT surcharge, will be passed-through via the ICPT mechanism,” it said in an exchange filing last Friday.
TNB added that domestic customers will not be affected by the ICPT as those consuming under 300kWh are exempted from the surcharge.
Surcharges applied to customers consuming above 300kWh will be funded by the Elect ricity Indust ry Fund, it said. The 1.35 sen per kWh surcharge is, however, applicable to non-domestic consumers.
TNB said the impact of the ICPT implementation is neutral for the company and will not have any impact on its business operations and financial position.
The ICPT is a government-approved mechanism that is managed by the EC since Jan 1, 2014, which allows TNB to reflect changes in fuel and generation costs in consumers’ electricity tariff every six months.
This is part of the wider regulatory reform, namely the incentive-based regulation, and is implemented according to Sec 26 of the Electricity Supply (Amendment) Act 2015.
TNB’s share price rose 7%, or 98 sen, to RM14.64 last Friday on the news and windowdressing activity by funds for the first half of the year.
The government-linked company also recently appointed Nazmi Othman, 54, as its CFO. He previously served as chief investment management officer for the company and his appointment as CFO is effective Aug 1 this year.