KUALA LUMPUR (June 29): The Federal Government has announced the imbalance cost pass-through (ICPT) rebate of 1.52 sen/kWh for the second half of the year 2016 (2H16) — the same amount for the first half of the year, according to Tenaga Nasional Bhd (TNB).

According to the utility group's bourse filing today, this ICPT rebate amounts to RM758.03 million and is made possible due to lower liquefied natural gas (LNG) and coal prices, higher performance of coal power plants and a reduction in the use of LNG for electricity generation.

"The rebate also takes into consideration additional gas cost following the government's subsidy rationalisation plan and decision to further increase the piped gas price from the current RM18.20/mmBTU to RM19.70/mmBTU," it added.

Earlier, Gas Malaysia Bhd said it is raising the natural gas tariffs for the non-power sector in Peninsular Malaysia by 5.95% with effect from July 15.

"This rebate will be applicable to all consumers except domestic consumers with monthly consumption of 300 kWh and below," the utility giant said.

The ICPT is a mechanism approved by the government and implemented by Energy Commission since Jan 1, 2014 as part of a wider regulatory reform called the Incentive Based Regulation (IBR).

The ICPT mechanism allows TNB to reflect changes in fuel and generation costs in consumers' electricity tariff every six months, subject to government's decision and approval.

TNB said the implementation of ICPT is neutral on its business operations and financial position.

Shares in TNB closed up eight sen or 0.57% at RM14.06, for a market value of RM79.35 billion.