By ALIFAH ZAINUDDIN / Pic By HUSSEIN SHAHARUDDIN
Tenaga Nasional Bhd (TNB) posted a net profit of RM1.24 billion for the second quarter ended June 30, 2018 (2Q18), on a revenue of RM12.5 billion, thanks to the return of the incentive-based regulatory (IBR) framework.
The utility giant noted in a filing last Thursday that the re-implementation of the electricity tariff involved mainly transmission and re-distribution businesses, which contributed 61.9% to the group’s net earnings.
TNB declared a 2Q18 interim dividend of 30.27 sen per share, amounting to RM1.72 billion.
President and CEO Datuk Seri Azman Mohd said the imbalance cost pass-through (ICPT) review for July to December 2018 made on June 29 resulted in an ICPT surcharge of 1.35 sen/kWh.
The government had given TNB the green light to raise the non-domestic tariff by 1.35 sen/kWh to be implemented in the second half of 2018 (2H18) to partially pass through RM698.2 million under-recovery of fuel cost in 1H18.
Azman said this marked the first time a surcharge was passed to customers which demonstrated the successful continuation of the overall IBR framework.
“The government has decided in order not to burden the rakyat, the surcharge for domestic or residential customers for the July-December 2018 period will be funded via Kumpulan Wang Industri Elektrik,” he noted in a statement.
The ICPT, which is part of the IBR framework, determines to either charge a surcharge or rebate customers every six months, depending on the price of coal, the main fuel in
generating electricity in the country. The mechanism is designed to reflect the true price of electricity utilised.
This, according to the group, will help promote economic, social, as well as environmental sustainability within the country.
TNB posted 1H18 net profit of RM3.39 billion, while revenue stood at RM24.77 billion. Total operating expenses for 1H18 stood at RM17.37 billion.
The group predicts the demand for electricity to remain stable throughout the year driven by by private sector activities.