KUALA LUMPUR: Tenaga Nasional Bhd (TNB) said electricity tariff rates and tariff structure under the regulatory period 2025-2027 (RP4) will be decided by the government by mid-2025, with current rates and tariff structure is set to hold till then in Peninsular Malaysia.
The power utility’s officials said the power utility base tariff rate moving into the RP4 period would rise by 14% to 45.62 sen per kilowatt hour, underpinned by a forecast 24% rise in coal price and 34% rise in liquified natural gas (LNG) price over the three-year period.
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“The revised tariff rate set by the government next year could be higher or lower after taking into consideration various factors and information by the government.
“The government wants to protect consumers and the electricity tariff rate for about 85% of households will likely remain unchanged over the RP4 period,” Datuk Nazmi Othman, chief financial officer at TNB said in a media event today.
Some 70% of the base tariff rate is correlated to generation activity in the power sector which in turn is a factor of fuel feedstock prices like coal and LNG. Over 50% of generation capacity in the country is now dependent on coal with about 30% on LNG.
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In its announcement on Thursday, TNB said under RP4, the allowed capital expenditure (capex) is RM42.821bil, which consists of RM26.554bil base capex and RM16.267bil contingent capex.
The total allowed capex for RP4, according to TNB, is set to bring significant economic benefits towards stimulating the nation’s economy and preparing the electricity network to facilitate the nation's energy transition agenda.
The allowed operating expenditure (opex) is RM20.782bil, which supports the planning and execution of necessary operational and maintenance activities for all of TNB’s electrical infrastructures.
TNB shares jumped 68 sen, or 4.80% to RM14.86, giving it a market capitalisation of RM86.38bil at 3.03 pm. The counter has gained over 48% so far this year.
