KUALA LUMPUR: Tenaga Nasional Bhd (TNB) says businesses will pay additional surcharge of 2.55 sen per kiloWatt hour (kWh) from March 1 till June 30 next year due to higher fuel and generation costs.
This follows the government's approval for the national utility company to continue implementing the Imbalance Cost Pass-Through (ICPT) mechanism for another six months, from 1st January to 30th June 2019.
The ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months. The current surcharge is 1.35 sen per kWh.
The ICPT surcharge for household users would remain unchanged, TNB said in a filing to Bursa Malaysia today.
The group said due to higher fuel and generation cost in the second half of the year, the additional generation cost or imbalance cost stood at RM1.82 billion.
"This is mainly due to the increase in average coal price to US$97.835 per tonne compared with the projected coal price set in the base tariff for regulatory period 2 (RP2) from 2018 to 2020, which is at US$75 per tonne," it added.
To ease the RM1.82 billion cost to be passed through to customers via the ICPT mechanism, TNB said the government had approved that surcharge for residential customers, amounting to RM308 million would be funded by the Electricity Industry Fund (KWIE).
Part of the surcharge for non-household customers, amounting to RM564 million, will be funded from cost and revenue adjustment of TNB for 2018, which was agreed during the base tariff determination in RP2 under the Incentive Based Regulation framework, it added.
"Therefore, the remaining imbalance cost to be passed-through via the ICPT mechanism is RM948 million, which will be passed through to non-household customers via staggered ICPT surcharge implementation," said TNB.
"This staggered ICPT surcharge is a once-off implementation to allow ample notice and provide adequate transition period to the non-household customers,” it added.