TNB expects slightly lower electricity tariff next year

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BANGI (Sept 3): Tenaga Nasional Bhd (TNB) projects slightly lower electricity tariff next year following the reduction in the cost of production of coal and gas currently.

President/chief executive officer Datuk Seri Amir Hamzah Azizan said, however, the tariff rate would depend on the Energy Commission (ST) which would make a detailed evaluation before proposing it to the Cabinet.

"The price of coal is around RM43 per tonne compared with RM65 per tonne during the same time last year, so there’s some savings there," he told reporters after the Tenaga Nasional Foundation (YTN) 2020 scholarship award ceremony here, today.

Nevertheless, he said the assessment would also be based on the movement and projection of the price of coal and gas until the end of this year.

"TNB is under the supervision of ST. Under the incentive-based regulation (IBR) scheme, all differences between the coal price and gas price will be included under the Electricity Industry Fund (KWIE) and it’s up to the ministry (Energy and Natural Resources) and ST.

"If we look at what the government has done in March until the end of this year, they have used part of the fund from KWIE for discounts (to consumers during the Movement Control Order)," he said.

ST is expected to announce the new electricity tariff at year-end for the January to June 2021 period after obtaining the agreement from the Cabinet.

Meanwhile, TNB chairman Datuk Seri Mahdzir Khalid said YTN had received more than 7,700 applications this year for scholarships for overseas study as well as scholarships for study at UNITEN from SPM 2019 school leavers.

Out of the figure, only 470 have been shortlisted and called for interviews.

"TNB and YTN aspire to nurture students not only as excellent students in academic fields, but also empower their leadership talent.

"This is in line with the selection criteria for YTN scholarship recipients, not just based on academic excellence solely but also their ability to lead, active involvement in sports as well as exude positive attitude,” he said.