TNB expects slightly lower electricity tariff next year

by TMR / pic by TMR FILE

TENAGA Nasional Bhd (TNB) projects slightly lower electricity tariff next year following the reduction in the cost of production of coal and gas currently.

President and CEO Datuk Seri Amir Hamzah Azizan said, however, the tariff rate would depend on the Energy Commission (EC) that will make a detailed evaluation before proposing it to the Cabinet.

“The price of coal is around RM43 per tonne compared to RM65 per tonne during the same time last year, so there’s some savings there,” he told reporters after the Tenaga Nasional Foundation (YTN) 2020 scholarship award ceremony yesterday.

Nevertheless, he said the assessment would also be based on the movement and projection of the price of coal and gas until the end of this year.

“TNB is under the supervision of EC. Under the Incentive-based Regulation scheme, all differences between the coal and gas prices will be included under the Electricity Industry Fund (KWIE) and it is up to the ministry (Energy and Natural Resources) and EC.

“If we look at what the government has done in March until the end of this year, they have used part of the fund from KWIE for discounts (to consumers during the Movement Control Order),” he said.

EC is expected to announce the new electricity tariff at year-end for January to June 2021 period after obtaining the agreement from the Cabinet.

Meanwhile, TNB chairman Datuk Seri Mahdzir Khalid said YTN had received more than 7,700 applications this year for scholarships for overseas study and scholarships for study at Universiti Tenaga Nasional from SPM 2019 school leavers.

Out of the figure, only 470 have been shortlisted and called for interviews.

“TNB and YTN aspire to nurture students not only as excellent students in academic fields, but also empower their leadership talent.

“This is in line with the selection criteria for YTN scholarship recipients, not just based on academic excellence solely, but also their ability to lead, active involvement in sports, as well as exude positive attitude,” he said.