Govt to give RM758.03mil rebate to TNB consumers

Offbeat Photo: Abundance of sunlight shines on the Tenaga Nasional Berhad's corporate high rise office where 132Kv power pylons stand close to the Taman Jaya entrance off Jalan Timur in PJ. Some people feel TNB should look into solar power to be earth friendly.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has announced a RM758.03mil rebate to consumers with monthly consumption of more than 300 kWh.

In a filing with Bursa Malaysia, the utility giant said this Imbalance Cost Pass-Through (ICPT) rebate was made possible due to lower liquefied natural gas (LNG) and coal prices, higher performance of coal power plants and a reduction in the use of LNG for electricity generation.

The Government had announced an ICPT rebate of 1.52 sen/kWh effective from July 1, 2016 until Dec 31, 2016.

TNB said the rebate also took into account additional gas cost following the Government’s subsidy rationalisation plan and decision to further increase the piped gas price from the current RM18.20/mmBTU to RM19.70/mmBTU. The new gas price will be effective from July 1, 2016.

It said the ICPT rebate would be applicable to all consumers except domestic consumers with monthly consumption of 300 kWh and below. (This category of consumers enjoy lower rates and are not affected by the tariff adjustments.)

The ICPT is a mechanism approved by the Government and implemented by the Energy Commission since Jan 1, 2014, as part of a wider regulatory reform called the Incentive Based Regulation.

The ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumers’ electricity tariff every six months, subject to Government’s decision and approval.  

“TNB also wishes to inform that the impact of ICPT implementation is neutral on TNB and will not have any effect to its business operations and financial position,” the company said.

TNB shares gained 8 sen to close at RM14.06 on Wednesday with 12.688 million shares being traded.
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