Others Imbalance Cost Pass-Through for January - June 2020

06/12/2019

Tenaga Nasional Berhad (“TNB”) wishes to inform that the Government of Malaysia (“Government”) has approved via a letter from Suruhanjaya Tenaga (“ST”) dated 6 December 2019, the continued implementation of Imbalance Cost Pass-Through (“ICPT”) mechanism for the period of 1 January until 30 June 2020.

For this period of ICPT implementation, the Government has approved a reduction in ICPT surcharge from the current 2.55 sen/kWh to 2.00 sen/kWh for non-domestic customers. A reduction of 0.55 sen/kWh ICPT surcharge is recorded due to reduction in actual coal costs for period July to December 2019, although the actual average coal prices are still above the benchmark fuel prices set in the base tariff for Regulatory Period 2 (“RP2”) from 2018 to 2020. Higher electricity demand has also contributed to the increase in fuel and associated generation costs for this period.