TNB proposes higher base tariff for Peninsular Malaysia from July 2025

 

Tenaga Nasional Bhd said any difference in tariffs from January to June 2025 will be covered through the Electricity Industry Fund.

PETALING JAYA: 

Tenaga Nasional Bhd has proposed a new tariff schedule with a base tariff of 45.62 sen per kilowatt-hour for Peninsular Malaysia under Regulatory Period 4 (RP4), for implementation from July 1, 2025.

The base tariff under RP3 had been set at 39.95 sen/kWh between 2022 and 2024.

The utility company said in a filing with Bursa Malaysia today that any difference from January to June 2025 will be covered through the Electricity Industry Fund.

“The current electricity tariff schedule which has been in place since 2014 will continue to be in effect, with no change in the electricity tariff rate and tariff structure until June 30, 2025,” Bernama quoted it as saying.

TNB said the regulatory rate of return has been maintained at 7.3% as per RP3, which would enable the company to make essential investments in the industry, ensuring a continuous and reliable electricity supply to meet growing demand.

It said generation costs remain the largest component of the electricity tariff, with gas and coal continuing to be the primary fuel sources for electricity generation during this period.

It said any additional generation costs resulting from higher fuel prices for electricity supply will be passed through the imbalance cost pass-through mechanism.

“TNB remains neutral in this regard and there will be no impact on the company’s business operations or financial position,” it said.

The government recently approved the implementation of RP4 under the Incentive-Based Regulation framework from January 2025 to December 2027.

TNB said it was informed of the decision through a letter from the Energy Commission dated Dec 24.

It said the allowed capital expenditure (capex) was RM42.821 billion, consisting of RM26.554 billion in base capex and RM16.267 billion in contingent capex.

“The total allowed capex for RP4 is set to bring significant economic benefits towards stimulating the nation’s economy and preparing the electricity network to facilitate the nation’s energy transition agenda,” it said.

TNB said the allowed operating expenditure was RM20.782 billion, which supports the planning and execution of necessary operational and maintenance activities for all of its electrical infrastructures. - FMT