KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is reducing the imbalance cost pass-through (ICPT) surcharge for non-households for the July-December 2020.
“For this period of ICPT implementation, the Government has approved a reduction in ICPT from the current 2.00 sen/kWh surcharge to 0.00 sen/kWh for non-domestic customers,” TNB said in a filing with Bursa Malaysia Wednesday.
The utility giant said the reduction in ICPT surcharge is due to a reduction in actual fuel costs for the period of January to June 2020 compared to the previous six months period of July to December 2019.
TNB said the average applicable coal price is at US$69.5 per tonne for the period of January to June this year.
It added that the begining from January 2020, the gas price is set based on reference market price (RMP), replacing the former two-tier gas pricing mechanism which comprises of regulated gas price and LNG Price.
For the period January to June 2020, the average RMP price is RM26.60 per million metric British thermal units (mmBtu)
The benchmark fuel prices set for determination of base tariff for the same period are US$75 per tonne for coal and RM27.20/mmbtu for gas.
The ICPT is a mechanism approved by the Government and implemented by the Energy Commission since January 1, 2014 as part of a wider regulatory reform called the Incentive Based Regulation.
ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months.
“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,” TNB said.
Separately, TNB has declared a record high dividend payout of RM5.69bil for the financial year ending December 31, 2019.
Its board of directors has approved a final, single-tier dividend of 20 sen per share, raising it to 50 sen per share for the period.
The board of directors had also approved a special dividend of 50 sen per share, bringing the total dividend per share to RM1.
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