News

TNB To Reduce Non-domestic Imbalance Cost Pass-through For July-Dec

KUALA LUMPUR, July 1 — The Energy Commission has approved the Imbalance Cost Pass-Through (ICPT) adjustment for the period of July 1 until Dec 31, 2020.

Tenaga Nasional Bhd (TNB), in a filling with Bursa Malaysia, said it received the approval from the commission via a letter dated June 30, 2020.

It said the government has approved a reduction in the ICPT for this period from the current 2.00 sen/kilowatt-hour (kWh) surcharge to 0.00 sen/kWh for non-domestic customers.

“This reduction in ICPT surcharge is due to a reduction in actual fuel costs for the period of January to June 2020 compared with the previous six months period of July to December 2019,” it said.

TNB also noted that for January-June 2020 period, average applicable coal price was at US$69.5/metric tonne (MT).

Since January 2020, the gas price was set based on the Reference Market Price (RMP), replacing the former two-tier gas pricing mechanism which comprises the Regulated Gas Price and LNG Price. For the January-June 2020 period, the average RMP price was RM26.60/ million British thermal units (mmBtu).

TNB said the benchmark fuel prices set for determination of Base Tariff for the same period were US$75/MT for coal and RM27.20/mmbtu for gas.

“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 (IBR), which allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months.

“This mechanism is implemented according to Section 26 of Electricity Supply (Amendment) Act 2015. TNB also wishes to inform that the impact of the ICPT implementation is neutral on TNB and will not have any effect to its business operations and financial position,” it added.

Source: BERNAMA

Adib Mohd

Recent Posts

SEACare 2025 Solidifies Malaysia’s Leadership in Southeast Asia’s Healthcare Landscape

Malaysia’s commitment to transforming its healthcare system takes centre stage this week as SEACare 2025,… Read More

1 day ago

Drop: A First Date That Turns Into a Psychological Minefield

What happens when trust, trauma, and tequila meet at the same table?  That’s the unnerving… Read More

2 days ago

SME Bank Collaborates with Autism Cafe Project to Empower Autistic Entrepreneurs

Small Medium Enterprise Development Bank Malaysia Berhad (“SME Bank”) has partnered with The Autism Cafe… Read More

2 days ago

Pahlawan Malaysia 2025: Malaysia’s Premier Obstacle Sports Competition Set to Energize the Nation at the Curve, Mutiara Damansara

The Malaysia Obstacle Race Sports Association is proud to announce Pahlawan Malaysia 2025, the premier… Read More

2 days ago

Tesla Malaysia is Celebrating the ‘Earth Week’ to Rewards Owners in Conjunction with a ‘Refer and Win’ Campaign

Embracing the mission to accelerate the world’s transition to sustainable energy, Tesla Malaysia launches the… Read More

2 days ago

Malaysia’s Viper Niza Racing On The Winners’ Podium At The 12 Hours Of Spa Francorchamps

Malaysians Douglas Khoo, Dominic Ang and Melvin Moh raced to a podium finish at last… Read More

2 days ago

This website uses cookies.