KUALA LUMPUR: The government has provided a total electricity subsidy of RM11.7 billion through 16 cycles under the imbalance cost pass through (ICPT) mechanism since 2015.
This helps Tenaga Nasional Bhd (TNB) to continue to remain neutral from the variations in fuel prices.
TNB said the recent announcement had again proven the support of the government in upholding the ICPT mechanism.
Prime Minister Datuk Seri Ismail Sabri had announced the implementation of the ICPT mechanism from July 1 until December 31, 2022, which TNB said was consistent with the timely implementation under the Incentive Based Regulation (IBR) framework.
"The Energy Commission released a statement that the tariff remains and to maintain the surcharge at 3.7sen/kWh for non-domestic customers and the rebate of 2.0 sen/kWh for domestic customers.
"The government has agreed to fund the rebate and surcharge totaling RM5.8 billion," the national utility company said in a statement.
TNB noted that the recent hike of the fuel prices had resulted in the company carrying higher than usual receivables balances.
"TNB is confident in the government's commitment on the ICPT mechanism and the full recovery of additional generation costs.
"This is important as it will allow TNB to continue to provide a reliable supply of electricity to the rakyat and the nation," it added.