TNB to cut non-household ICPT surcharge to two sen per kWh for Jan-June 2020

TNB to cut non-household ICPT surcharge to two sen per kWh for Jan-June 2020
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KUALA LUMPUR (Dec 6): Tenaga Nasional Bhd (TNB) is reducing the imbalance cost pass-through (ICPT) surcharge for non-households for the January-July period of 2020.

In a bourse filing, TNB said the Government had approved the reduction to two sen per kWh, from 2.55 sen currently, for non-domestic customers.

The utility giant said the 0.55 sen/kWh cut follows a  reduction in actual coal costs for the July-December 2019 period.

The actual average coal prices, however, are still above the benchmark fuel prices set in the base tariff for Regulatory Period 2 (RP2) from 2018 to 2020, it said.

Higher electricity demand has also contributed to the increase in fuel and associated generation costs for this period, it added.

TNB said the surcharge will be implemented on top of the average base tariff of 39.45 sen per kWh.

Any shortfall or excess in the ICPT will be funded or transferred to customers via the Kumpulan Wang Industri Elektrik (KWIE) fund.

In addition, in line with the Incentive-Based Regulation framework and mechanism for RP2’s tariff base determination, a total revenue adjustment of RM774 million from TNB will be transferred to the KWIE fund to aid in the stabilisation of future electricity tariffs via the gradual build-up of the fund.

In July to December 2019, the average price of coal increased to US$77.35 per tonne compared with the benchmark coal price in the base tariff of US$75 per tonne.

In addition, the price of regulated piped gas increased by RM1.50 per mmBTU to RM28.70 from RM27.20.

Shares in TNB closed 1.21% or 16 sen higher at RM13.42, giving it a market capitalisation of RM76.32 billion.