No electricity tariff hike for July-Dec period

PETALING JAYA: There will be no change in tariff rates following the government's decision to continue with the current imbalance cost pass-through (ICPT) rebate of 1.52 sen/kWh till Dec 31, 2017.
In a filing with Bursa Malaysia, Tenaga Nasional Bhd (TNB) said the government has announced an ICPT subsidy of 2.54 sen/kWh effective July 1, 2017 till Dec 31, 2017.
The government will bear a total cost of RM1.303 billion for ICPT during the period comprising the actual imbalance cost for January till June 2017 of RM523.23 million and cost to continue with the current ICPT rebate of 1.52 sen/kWh amounts to RM780 million.
TNB said the actual imbalance cost for January till June 2017 of RM523.23 million resulted in a surcharge of 1.02 sen/kWh.
"This additional cost was mainly due to rising coal prices in the global market and due to the impact of foreign exchange rates on ringgit as well as additional gas cost of RM280 million following the government's subsidy rationalisation plan and government's decision to further increase the piped gas price by RM1.50/mmBTU to the power sector from the current RM21.20/mmBTU to RM22.70/mmBTU," it said.
The new gas price of RM22.70/mmBTU will be effective from July 1, 2017.