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Malaysia keeps electricity rebate for another six months till December 31

KUALA LUMPUR: The government has approved the continued implementation of Imbalance Cost Pass-Through (ICPT) mechanism for the period of July 1 until December 31 this year, Tenaga Nasional Bhd (TNB) said.

TNB, n a filing to Bursa Malaysia today, said the impact of ICPT implementation was neutral on the group and would not have any effect to its business operations and financial position.

TNB said during the period, the government had decided to maintain an ICPT rebate of two sen per kilowatt hour (kWh) for all customers including domestic customers with monthly consumption of 300 kWh and below. 

"This ICPT rebate is partly the result of overall reduction in actual generation costs for the period of January to June 2021," it said.

TNB said the actual fuel prices for period January to June 2021 were as follows:

- A slight increase of average coal price in the global market at US$70.06 per tonne compared to the benchmark coal price set in the base tariff at US$67.45 per tonne. 

- Starting from January 2020, the gas price is set based on reference market price (RMP), replacing the former two-tier gas pricing mechanism which comprises of regulated gas price and liquefied natural gas price. 

- For period January to June 2021, the average RMP price is RM17.16 per mmBTU (metric million British thermal unit) which is lower than the benchmark gas price for the year set in the base tariff at RM27.20 per mmBTU. 

TNB said any shortfall or excess in the ICPT would be funded or transferred to customers via the Kumpulan Wang Industri Elektrik fund to help stabilise electricity tariff.

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