KUALA LUMPUR: The electricity tariffs are likely to be maintained until June this year as there are no changes in the current Imbalance Cost Pass-Through (ICPT) mechanism for the period of Jan 1 until June 30, 2019.
The ICPT mechanism allows the Energy Commission (EC) to reflect changes in fuel and generation costs in electricity tariffs every six months, subject to government approval.
“From TNB point of view, we expect that regulation and rules to be maintained,” Tenaga Nasional Bhd (TNB) chairman Tan Sri Leo Moggie said in response to Prime Minister Tun Mahathir Mohamad’s recent remarks that the government is considering reducing electricty tariffs in the wake of falling coal and gas prices.
“The price is determined by the (EC). Every six months they will look at the pricing structure and relate to the cost of fuel.
“If the overall cost of fuel in the previous six months is higher than the actual cost of production of electricity, then the surcharge will be charged to the consumers.
“But (if it is lower), you could enjoy the reductions in the following six months,” he told reporters on the sideline of the Perdana Leadership Foundation CEO Forum 2019 here today.
The current average base tariff is 39.45 sen per kWh. The rate is reviewed every three years and the last revision was made in 2018.