Imbalance Cost Pass (ICPT) - Through Tariff Rebate
Tenaga Nasional Berhad (“TNB”) wishes to inform that the Government of Malaysia (“Government”) has announced an Imbalance Cost Pass-Through (“ICPT”) rebate of 1.52 sen/kWh effective from 1 July 2016 until 31 December 2016.
This ICPT rebate amounts to RM758.03 million and is made possible due to lower Liquefied Natural Gas (“LNG”) and coal prices, higher performance of coal power plants and a reduction in the use of LNG for electricity generation.
The rebate also takes into consideration additional gas cost following the Government’s subsidy rationalisation plan and decision to further increase the piped gas price from the current RM18.20/mmBTU to RM19.70/mmBTU. The new gas price will be effective from 1 July 2016.
This rebate will be applicable to all consumers except Domestic consumers with monthly consumption of 300 kWh and below.
The ICPT is a mechanism approved by the Government and implemented by Suruhanjaya Tenaga (“ST”) since 1 January 2014 as part of a wider regulatory reform called the Incentive Based Regulation (“IBR”). ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumers' electricity tariff every six (6) months, subject to Government’s decision and approval.
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.