Gas tariff revision for non-power sector effective Jan 1

Gas Malaysia says it has received the approval from the government.

KUALA LUMPUR: Gas Malaysia Bhd today announced that the revision of the natural gas tariff for the non-power sector in Peninsular Malaysia will be effective from Jan 1, 2018 to June 30, 2018.

In a filing to Bursa Malaysia today, Gas Malaysia said it had received the approval from the government in a letter from the Energy Commission dated Nov 28, 2017.

“The government has prescribed the incentive-based regulation (IBR) framework which sets the base tariff (BT) for a regulatory period of three years from January 2017 and allows changes in the gas costs to be passed through the gas cost pass through (GCPT) mechanism every six months,” it said.

The average natural gas BT is set at RM30.90 per one million British Thermal Units (MMBtu) for the period beginning January to June 2018 in line with Gas Malaysia’s announcement on Dec 28, 2016.

In addition, under the GCPT mechanism, a surcharge of RM1.62 per MMBtu will apply to all tariff categories due to the increased liquefied natural gas (LNG) price against the reference price in the BT in this period.

This translates to an average effective tariff of RM32.52 per MMBtu.

Effective Jan 1, 2018, type A users or residential consumers will be charged a revised BT of RM22.30 per MMBtu from the current BT of RM20.23 per MMBtu.

For Type B users that consume up to 600 MMBtu annually, the revised BT effective Jan 1, 2018 will be RM28.78 per MMBtu compared with the existing BT of RM26.11 per MMBtu.

For annual gas consumption of 601 to 5,000 MMBtu, the revised BT effective Jan 1 next year will be RM28.93 per MMBtu compared with the current BT of RM26.25 per MMBtu, while for annual gas consumption of 5,001 to 50,000 MMBtu, the revised BT is RM29.22 per MMBtu compared with the existing BT of RM26.51 per MMBtu.

For the annual gas consumption of 50,001 to 200,000 MMBtu, the revised BT effective Jan 1, 2018 will be RM30.48 per MMBtu against the existing BT of RM27.66 per MMBtu and for annual gas consumption of 200,001 to 750,000 MMBtu, the revised BT will be RM30.48 per MMBtu compared with the current BT of RM27.66 per MMBtu.

“While the tariff revision has no material impact on the company’s business operations, it is expected to contribute positively towards its financial position for the financial year ending Dec 31, 2018,” Gas Malaysia said. FMT