TNB expects slightly lower power tariffs next year

The Energy Commission is expected to announce the new electricity tariffs at the year-end after obtaining agreement from the Cabinet.

BANGI: Tenaga Nasional Bhd (TNB) projects slightly lower electricity tariffs next year following the reduction in the cost of production of coal and gas currently.

President and CEO Amir Hamzah Azizan said the tariff rates would depend on the Energy Commission (ST), which would make a detailed evaluation before proposing it to the Cabinet.

“The price of coal is around RM43 per tonne compared with RM65 per tonne during the same time last year. So, there’re some savings there,” he told reporters after the Tenaga Nasional Foundation (YTN) 2020 scholarship award ceremony here today.

Nevertheless, he said the assessment would also be based on the movement and projection of the price of coal and gas until the end of this year.

“TNB is under the supervision of ST. Under the incentive-based regulation (IBR) scheme, all differences between the coal price and gas price will be included under the Electricity Industry Fund (KWIE) and it’s up to the energy and natural resources ministry and ST.

“If we look at what the government has done in March until the end of this year, they have used part of the funds from KWIE for discounts (to consumers during the movement control order),” he said.

ST is expected to announce the new electricity tariffs at the year-end for the January to June 2021 period after obtaining the agreement from the Cabinet.

Meanwhile, TNB chairman Mahdzir Khalid said YTN had received more than 7,700 applications this year for scholarships for overseas study as well as scholarships for study at Uniten from SPM 2019 school leavers.

Out of the figure, only 470 have been shortlisted and called for interviews.

“TNB and YTN aspire to nurture students not only as excellent students in academic fields, but also empower their leadership talent.

“This is in line with the selection criteria for YTN scholarship recipients, not just based on academic excellence solely but also their ability to lead, active involvement in sports as well as exude a positive attitude,” he said. - FMT