Higher gas tariff for households by July 1

To recap, the government had prescribed the incentive based regulation (IBR) framework which sets the base tariff for a regulatory period of three years from January 2017.

KUALA LUMPUR: Households will have to pay higher tariffs from July 1, 2018 after Gas Malaysia Bhd
 imposed the surcharge of 77 sen, raising the tariff to RM23.80 per one million British Thermal Units (BTU).

Gas Malaysia said on Wednesday it had received the go-ahead from the Energy Commission to raise the surcharge under the mechanism for the tariffs following the global increase in gas prices.

The incentive based regulation (IBR) framework sets the base tariff for a regulatory period of three years from January 2017.

The IBR allows changes in the gas costs to be passed through via the Gas Cost Pass Through (GCPT) mechanism every six months.

Gas Malaysia said that in addition, under the GCPT mechanism, a surcharge of 77 sen per 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. 

"This translates to an average effective tariff of RM32.69 per MMBtu.

“The average natural gas base tariff is set at RM31.92 per MMBtu for the period beginning July to December 2018 in line with Gas Malaysia’s announcement on Dec 28,  2016,” it said. 

While the tariff revision has no material impact on Gas Malaysia’s business operations, it is expected to contribute positively towards the financial position of the Company for the financial year ending Dec 31, 2018.- Star