KUALA LUMPUR (July 5): Tenaga Nasional Bhd's (TNB) share price fell as much as 64 sen or 4.53% to RM13.50 as at Bursa Malaysia's afternoon break today, on news that the government is studying a proposal to liberalise the country's electricity retail sector.
At 12:30pm, state-controlled utility TNB cut losses at RM13.58 with 2.88 million shares exchanging hands. TNB was Bursa Malaysia's top decliner.
Malaysiakini, quoting the Energy, Science, Technology, Environment and Climate Change Ministry's parliamentary written reply dated July 3, reported today that the government is conducting a study on whether to allow new energy suppliers to come into the market, with the results to be made known soon.
It was reported that if the government decides to go ahead with the plan, this would mean TNB will no longer be the sole choice for consumers in Peninsular Malaysia to buy electricity.
"The ministry is scrutinising and studying the proposal to liberalise the electricity retail sector to allow users to choose electricity suppliers other than TNB. With regards to this, the ministry is expected to table its findings to the Cabinet in the near future, to help determine the future of the electricity supply industry," the ministry was quoted as saying in its parliamentary written reply to Jasin MP Ahmad Hamzah's query.
It was reported that Ahmad wanted to know if the electricity sector will be liberalised to promote more competitive tariffs.
The ministry was quoted as saying a study is being conducted to determine whether the liberalisation of the electricity retail sector will indeed result in more competitive tariffs for consumers.