Analysts said the risk for Tenaga Nasional Bhd (TNB) is covered under the imbalance cost pass-through mechanism, while for independent power producers (IPPs), their returns are governed by long-term power purchase agreements (PPAs) regardless of short-term demand fluctuations.
PETALING JAYA: Demand for electricity is expected to ease in the second quarter of the year with the implementation of the movement control order (MCO) and the sluggish economic activities foreseen thereafter due to the Covid-19 outbreak.
However, analysts said the impact on power companies is “expected to be less severe, given their resilient earnings profile.”
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