ICPT approval seen to boost TNB’s prospects

KUALA LUMPUR: MIDF Research has upgraded its call on Tenaga Nasional Bhd (TNB) from “neutral” to “buy” over the utility’s positive outlook after the government approved the continued implementation of the Imbalance Cost Pass-Through (ICPT) mechanism for the Jan 1 to June 30, 2023 period.

The research house said the Energy Commission’s latest ICPT review points to an incrementally positive outcome for TNB given a significantly higher ICPT pass-through allowed relative to the actual recovery of ICPT under-recovery of 27 sen per kilowatt-hour (kWh).