KUALA LUMPUR: Gas Malaysia Bhd (Gas Malaysia) has announced the revision of natural gas tariff to RM31.92/MMBtu from RM30.90/MMBtu for the non-power sector in Peninsular Malaysia effective July 1, 2018, to December 31, 2018.
The revision, said Gas Malaysia, was approved by the government through a letter from the Energy Commission dated June 12, 2018,
“The government has prescribed the Incentive Based Regulation (IBR) framework which sets the base tariff for a regulatory period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.
“The average natural gas base tariff is set at RM31.92/MMBtu for the period beginning July to December 2018 in line with Gas Malaysia’s announcement on 28 December 2016.
“Under the GCPT mechanism, a surcharge of RM0.77/MMBtu will apply to all tariff categories due to the higher actual gas costs against the reference gas costs in the Base Tariff in this period,” it said in its filing with Bursa Malaysia today.
The tariff revision would translate to an average effective tariff of RM32.69/MMBtu.
Gas Malaysia said while the tariff revision has no material impact on Gas Malaysia’s business operations, it is expected to contribute positively towards its financial position for the financial year ending December 31, 2018.
The last tariff revision was in November last year for the period from January 1 to June 30, 2018.
Under the IBR framework, the base tariff will be set for a regulatory period of three years since January 2017 which will allow changes in the gas costs to be passed through using the CGPT mechanism every six months.