KUALA LUMPUR: Tenaga Nasional Bhd (TNB) said that its business operations and financial condition will not be affected by the Ministry of Energy Transition and Water Transformation's (Petra) decision to maintain current power rates until December 31 of this year.
On June 29, Petra decided to continue the imbalance cost pass-through (ICPT) mechanism from July 1 to December 31, 2024.
The ministry also announced a lower surcharge, by one sen/kWh, for street lighting category (tariff G and G1) under the supervision of the local authorities (PBT) for the same period so that the PBT can provide comprehensive lighting services in public areas.
As for commercial and industrial users, it said, they will experience a reduction in the imbalance cost pass-through (ICPT) rate of one sen/kWh from July to December 2024.
Petra said in a statement issued on Saturday that the government hopes that the reduction in the ICPT surcharge rate for this category can continue to maintain the stability of the price of goods in the market while supporting the government's efforts to encourage investment in Malaysia.
It added that the amount of targeted electricity subsidies for the period from July to December 2024 will be as much as RM2.192 billion.
TNB said in a stock exchange filing yesterday that it expects the continued implementation of the imbalance cost pass-through (ICPT) mechanism to have a neutral impact on the company.
"The decision was made to address the additional generation costs due to the higher fuel prices used for the supply of electricity during the period of January 1 to June 30, 2024.
"To-date, TNB said the government has successfully implemented 20 cycles of ICPT since the introduction of the mechanism in 2015," TNB said in a stock exchange filing.