Gas Malaysia to use new regulatory framework in 2016

PETALING JAYA: The implementation of the incentive-based regulation framework (IBR) by Gas Malaysia Bhd will take effect on Jan 1, 2016.
The IBR is a form of economic regulation aimed at incentivising Gas Malaysia for better operational and financial performance, whilst regulating the natural gas tariff.
In support of the liberalisation of the natural gas industry, which is to gradually align current piped gas towards market prices, the IBR is introduced to promote efficient resources allocation and usage, and sustainable financial performance, Gas Malaysia said.
With respect to its implementation, the IBR will first be on a trial run in 2016, following which the first regulatory period will run for the next three years from 2017 until 2019.
“Gas Malaysia has made sufficient preparation to ensure a smooth transition to this new regulatory framework,” it said in a filing with the stock exchange yesterday.
It added that the IBR promotes cost-efficient tariff structure for the customers. It also bodes well for the company as it is designed to ensure earnings clarity.
“With the IBR implementation, Gas Malaysia will be financially neutral with respect to gas costs going forward,” it said.