TNB Initiatives to Help Combat COVID-19

23/03/2020

1. What is TNB doing to support and help Malaysians during this period?

TNB is fully supportive of the Government efforts to combat the spread of COVID-19. As the provider of essential services in the area of electricity, TNB is very concerned on how this crisis is affecting the customers/ rakyat, electricity industry, economy and the nation. TNB is also well aware of the crucial role in continuously keeping the lights on for the rakyat and the nation and is doing so by:

• Ensuring reliability and security of supply during a trying time when many people are having to stay at home with their families and work from home.  Our TNB staff are working around the clock and on the ground to deliver this surety of supply.
• Maintaining service availability for the convenience of customers/ rakyat while adhering to safety and health of the public and staff and social distancing as advised by the authorities, through digital and online channels.
• TNB's staff continue to man our contact centre, maintenance and outage responses to ensure supply is sustained.
• Customers can still contact TNB Careline (24hrs) or email to [email protected]
• Customers can check and pay their electricity bill, apply for new or upgrade of supply, change of account or terminate their account via myTNB apps and portal.

TNB is very concerned about the capacity of the medical system during this outbreak and as a responsible corporate citizen, has banded together in a coalition with other GLCs, private companies and other corporations to help support the fight against COVID-19 and relieve some of the impact. TNB has made a contribution of RM10 million to the Ministry of Health (MOH) to kick start this effort. The first batch of essential supplies has reached Hospital Sungai Buloh on 21 March 2020.

2. What else is TNB doing to keep the lights on and the economy moving?

TNB will continue to ensure the country gets the fuel to power our generating plants and ensure that the power gets delivered to all the 9.2 million customers - TNB spends around RM2.5 billion a month to pay for generation costs.

TNB will continue to invest in the system and infrastructure to further strengthen and improve reliability, security and responsiveness to the tune of RM11 billion this year, and to help spur the economy, the company aims to bring forward another RM2 billion proposed investment from 2021 into 2020.

3. What kind of discount is provided under ESP (Economic Stimulus Package)?

On February 27, 2020, the RM20 billion Economic Stimulus Package (ESP) was launched and underpinned by three strategies:

• to address the impact of COVID-19
• to stimulate people-centered growth and
• to promote quality investment.

No one is immune from the impact of this crisis. Like the rakyat, other businesses as well as TNB are also affected by this crisis, with businesses and industries temporary closure and lack of demand.

However, the Government and TNB understand and empathise with everybody affected as they are, in terms of jobs, mobility and financial implications. Hence, as part of the PRE package, TNB is supporting the government and Malaysians to keep the economy going and allay the economic pressure on the industrial sectors most impacted in particular and all customers in general by providing 6-month discount on the monthly bills as follows:

• 6-month discount of 15% for the six sectors identified as being most affected by the impact of COVID-19 - hotels operators, travel agencies, local airlines offices, shopping malls, convention centers and theme parks.
• 6-month discount of 2% to all residential, commercial, industrial and specific agriculture excluding the 6 sectors mentioned above.

Furthermore, TNB has suspended disconnections during the MCO period. Customers who encounter financial hardship may engage TNB to establish feasible payment plan post MCO.

4. Who is eligible for this discount?

All TNB electricity customers belonging to the Industrial, Commercial, Agriculture and Residential categories are eligible for the discount.

5. How many customers will receive this discount and how much is the total discount given?

6. How long is the period for the given electricity discount?

To assist cash flow and reduce business costs for COVID-19 affected companies and Rakyat, the Government proposes for a 15% discount to 6 identified sectors and 2% to all eligible customers other than those 6 sectors over a six (6) month period of electricity consumption from 1 April 2020 to 30 September 2020. Refer to Answer 5 above.

7. Who gave this electric discount and why?

The Government has announced the Economic Stimulus Package (ESP) on 27 February 2020 to mitigate the negative impact of the COVID-19 on the Malaysian economy while preserving the welfare of the people. The stimulus package will focus on supporting consumption, investment and the tourism sector as well as stimulate the domestic economy and travel, affected by the outbreak.

As part of this package, TNB will be providing a six (6) months discount of 15 percent of monthly electricity bill for the six sectors identified as being most affected by the impact of COVID-19 - hotels operators, travel agencies, local airlines offices, shopping malls, convention centers and theme parks and a 2 percent discount to all residential, commercial, industrial and specific agriculture customers excluding the 6 sectors mentioned above.

The total cost of the electricity discount is almost RM500 million and will be funded through the Electric Industry Fund (KWIE). KWIE is a fund created and enforced on January 1, 2016 and regulated by the Energy Commission (ST), which aims to reduce the impact of electricity tariffs on customers. The KWIE Fund comprises payments of any sums appropriated and paid by licensees (such as TNB) in accordance with Section 44 B of the Electricity Supply Act 1990. It also includes monies provided by Parliament to KWIE from time to time.

Under the Incentive Based Regulation mechanism, TNB has allocated and paid all accrued money to the fund, including interest on savings or penalties arising from the implementation and enforcement of the Energy Purchase Agreement (PPA) and other licensees.

8. What is the 6% discount on electricity that customers are enjoying?

The 6% discount is subsidy that has been enjoyed by Domestic Customers who have not been charged the Imbalance Cost Pass Through (ICPT) “Surcharge” of 2.00 sen / kWh in their bill from January - June 2020.

Only Non-Residential users are surcharged.

This is because Domestic customers have been subsidized through funds from KWIE as regulated by the Energy Commission (ST) aimed at reducing the impact of electricity tariffs on customers .

This is a fund to which TNB also contributes.

With this PRE, domestic customers will now enjoy on average of about 8% discount which is an additional 2% percent electricity discount, in addition to the current waiver on ICPT equivalent to about 6% discount or 2.00 sen/kWh in their electricity bills from January - June 2020.

Domestic customers have been protected from the fuel cost (ICPT surcharges) increases during the rising coal prices in 2018 and 2019 too. Moreover, domestic customers consuming up to 300kWh per month have not had any tariff increases since 2009, and the lifeline domestic customers with less than 200kWh per month have not had any tariff increases since 1997.