KUALA LUMPUR: The government, via a letter from the Energy Commission, has given its approval for Tenaga Nasional Bhd (TNB) to continue implementing the imbalance cost pass-through (ICPT) mechanism for the period from Jan 1-June 30, 2020 (H1 2020).
In a filing to Bursa Malaysia today, TNB said the government had also approved a reduction in ICPT surcharge from the current 2.55 sen per kWh to 2.00 sen per kWh for non-domestic customers.
The 0.55 sen reduction per kWh ICPT surcharge is due to reduction in actual coal costs for the July to December 2019 period, although the actual average coal prices are still above the benchmark fuel prices set in the base tariff for Regulatory Period 2 (RP2) from 2018 to 2020.
Higher electricity demand has also contributed to the increase in fuel and associated generation costs for this period.
TNB said the average coal price had increased to US$77.35 (RM321.74) per tonne as compared to the benchmark coal price set in the base tariff at US$75 (RM311.96) per tonne.
In addition, the regulated piped gas price has continued to increase by RM1.50 per million British Thermal Unit (mmBTU) from RM27.20 per mmBTU in the benchmark price set in the base tariff to RM28.70 per mmBTU.
“This is based on the Cabinet’s decision on May 3, 2017, allowing the adjustment of the regulated piped gas price for the power sector with an automatic increase of RM1.50 per mmBTU every six months until it reaches Reference Market Price for a period of three years from 2018 until 2020,“ TNB added.
The utility giant said the ICPT surcharge will be implemented on the average base tariff of 39.45 sen per kWh, adding that no surcharge will be applied to domestic (residential) customers.
A total amount of RM62.95 million is utilised from the Electricity Industry Fund (KWIE) fund to cushion the ICPT surcharge for residential customers.
Meanwhile, the ICPT surcharge of 2.0 sen per kWh is applicable for non-domestic customers.
In addition, any shortfall or excess in the non-domestic customers’ ICPT will be funded or transferred to customers via KWIE fund.
“In line with the Incentive Based Regulation framework and mechanism for base tariff determination in RP2, the total revenue adjustment of TNB amounting to RM774 million will be transferred to the KWIE fund to aid in the stabilisation of electricity tariff in the future via gradual build-up of the fund,“ TNB said.
TNB customers can estimate future ICPT impact using the calculator available on www.myelectricitybill.my. — Bernama
