TNB: ICPT mechanism transparent and fair for all consumers

by FARA AISYAH

TENAGA Nasional Bhd (TNB) supports the government’s decision to adjust the imbalance cost passthrough (ICPT) mechanism from July 1 until Dec 31, 2020, which ensures consumers will continue to benefit from a transparent and fair electricity price.

TNB president and CEO Datuk Seri Amir Hamzah Azizan (picture) said the mechanism has served the industry well since 2014 and remains relevant in a volatile fuel-price environment.

“As a utility company, TNB is governed by the Energy Commission (EC) and operates within a regulated environment, which includes the ICPT mechanism.

“As guided by the EC’s decisions through the ICPT, TNB will reflect the changes in fuel and other generation-related costs in the electricity tariff every six months,” he said in a statement yesterday.

He added that the ICPT reduction reflects the actual decline in global fuel prices for the past six months.

From January to June 2020, fuel costs fell in tandem with the decline in actual fuel prices below the benchmark fuel prices set in the base tariff for Regulatory Period 2 from 2018 to 2020.

The average applicable coal price for January to June 2020 stood at US$69.50 (RM298.16) per metric tonne (MT) compared to the benchmark coal price set in the base tariff of US$75/MT.

Gas price for the same period is RM26.6 per one million British thermal unit (MMBtu), which is lower than the benchmark gas price set in the base tariff of RM27.20/MMBtu.

Meanwhile, TNB and its subsidiary, GSPARX Sdn Bhd, announced its partnership with Bank Islam Malaysia Bhd to provide financing for solar photovoltaic (PV) ownership for homeowners in the country.

“TNB is actively promoting rooftop solar panels where at the end of last year, we had more than 100 customers from commercial, industrial, educational, government institutions and residential homes, who have turned into ‘prosumers’, generating clean energy on their premises.

“These prosumers are now generating more than 26 megawatts of energy combined. At the same time, they also reap the benefit of potential savings from lower electricity bills and have the opportunity to generate income by exporting excess energy to the grid under the net energy metering scheme,” Amir Hamzah said.

Bank Islam CEO Mohd Muazzam Mohamed said the latest offering of the bank’s personal financing product to GSPARX’s solar PV package customer is an extension of the symbiotic relationship between the three parties.

Through the collaboration, Bank Islam is offering up to 100% financing for the purchase of GSPARX’s solar PV package or up to RM300,000 with attractive floating rates of as low as 4.67% (BR +1.9% pa) or fixed rate 4.5% for three years accordingly.

GSPARX will be offering residential packages that include one year of free maintenance, product and workmanship warranty, 24/7 online monitoring, as well as aftersales services.

“These added values will not only benefit customers but also be instrumental in preserving the planet through promoting renewable energy (RE).

“It is also a part of our contribution to realising Malaysia’s aim of achieving 20% of RE generation by the year 2025,” Mohd Muazzam said.