KUALA LUMPUR: Tenaga Nasional Bhd expects to recover RM12 billion in Imbalance Cost Pass Through (ICPT) receivables for the second half of its financial year 2023 (FY23).
From July to December 2022, TNB obtained a full ICPT recovery of RM5.8 billion. In the first half of FY23, the total ICPT cost recovery stood at RM16.2 billion.
"TNB will fully recover the net imbalance cost through the ICPT surcharge that will be passed through the non-domestic customers (medium voltage and high voltage) at 20.0 sen/kWh, as well as RM10.4 billion of cost recovery from the government.
"TNB has received RM4 billion in January 2023 while the remaining amount will be paid by the government in five equal installments," its president and chief executive officer Datuk Baharin Din said today.
"The government's decision on the recent ICPT showed its commitment in ensuring that the industry remains resilient," he added.
Amid the high fuel cost in 2022, Baharin said its ICPT receivables remained relatively high due to the timing mismatch between the upfront payment made by TNB and recovery of the surcharges via the ICPT framework.
TNB reported higher receivables of RM22.83 billion in the fourth quarter ended Dec 31, 2022, more than double the RM10.55 billion amount a year ago.
On a quarter-on-quarter basis, receivables increased 2.36 per cent from RM22.3 billion in the preceding quarter.
"Going forward, the pressure on ICPT receivables is expected to ease given the current fuel price trends and the government upholding the IBR (Incentive-Based Regulations) framework," Baharin said.
He said TNB would continue to be proactive in its working capital management given the current high fuel prices environment.
Among others, it has taken appropriate steps to improve collection in 2022, which has lowered its trade receivable risk.
Meanwhile, Baharin said total group capital expenditure (capex) for 2023 was planned at RM12.8 billion. Of this, RM7 billion will be for regulated capex and the balance of RM5.8 billion for other major projects.
TNB's FY22 net profit dropped 5.4 per cent to RM3.46 billion from RM3.66 billion in the previous year due to higher finance cost and tax expenses.
Tax expenses included Cukai Makmur for FY22 which amounted to RM340.8 million.
Group revenue for the year rose 5.7 per cent to RM50.87 billion from RM48.12 billion in FY21 mainly due to the higher sales of electricity of RM2.65 billion.