TNB confident in govt's commitment to ICPT mechanism

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KUALA LUMPUR: Tenaga Nasional Bhd (TNB) said it is confident in the government’s commitment to the imbalance cost pass-through (ICPT) mechanism and the full recovery of additional generation costs.

This is important as it would allow the utility giant to continue to provide a reliable supply of electricity to the people and the nation, it said in a statement today.

The government has agreed to fund the rebate and surcharge amounting to RM5.8 billion.

The ICPT mechanism will continue to be implemented for the period of July 1 until Dec 31, 2022.

The electricity tariff for domestic users remained as it is as the government maintains the surcharge at 3.7 sen per kilowatt-hour (kWh) and rebate of 2.0 sen/kWh, while the surcharge of 3.7 sen/kWh is maintained for non-domestic customers.

‘’The recent hike of the fuel prices has resulted in TNB carrying higher-than-usual receivables balances. We are managing closely the receivables,’’ it said.

The government has provided a total subsidy of RM11.7 billion through 16 cycles since 2015, where TNB continues to remain neutral from the variations in fuel prices. - Bernama