KUALA LUMPUR, Jun 30 – Tenaga Nasional Bhd (TNB) today announced that the Malaysian government has declared an Imbalance Cost Pass-Through (ICPT) rebate of 1.52 sen/kilowatt hour (kWh) effective July 1 until Dec 31, 2016. This ICPT rebate amounts to RM758.03 million and is made possible by lower liquefied natural gas and coal prices, higher performance of coal power plants and a reduction in the use of LNG for electricity generation, TNB said in a filng to Bursa Malaysia today.
“The rebate also takes into consideration additional gas cost following the government’s subsidy rationalisation plan and decision to further increase the piped gas price from the current RM18.20/ million British Thermal Units (mmBTU) to RM19.70/mmBTU,” the power utility company said.
This rebate will be applicable to all consumers except domestic consumers with monthly consumption of 300 kWh and below. The ICPT is a mechanism that allows TNB to reflect changes in fuel and generation costs in consumers’ electricity tariff every six months, subject to the government’s decision and approval. TNB also noted that the impact of the ICPT implementation is neutral on TNB and will not have any effect on its business operations and financial position. — Bernama