KUALA LUMPUR: The government has approved the continued implementation of the Imbalance Cost Transfer Mechanism (ICPT) for the period July 1 to December 31, 2021.
In a file filed with Bursa Malaysia, Tenaga Nasional Bhd (TNB) said the government has decided to maintain an ICPT discount of two sen per kilowatt hour (kWh) during the ICPT implementation period for all customers, including domestic customers, with a monthly consumption of 300 kWh and less.
“This ICPT rebate is in part the result of the overall reduction in actual production costs for the period January to June 2021,” he said.
The utilities giant said that during the period January to June 2021, there was a slight increase in the average price of coal in the world market to $ 470.06 per tonne from the benchmark price of the coal set in the base tariff at 67.45 USD per tonne.
TNB said that from January 2020, the price of gas was set on the basis of the Reference Market Price (RMP), replacing the old two-tier gas pricing mechanism which includes the price of regulated gas and the price of liquefied natural gas.
He said the average gas RMP in the first half of the year was RM17.16 per million British thermal units (mmBTU), lower than the benchmark gas price for the year set in the base tariff at 27 , 20 RM / mmBTU.
“Any ICPT deficit or surplus will be financed or transferred to customers through the Kumpulan Wang Industri Elektrik fund to help stabilize electricity tariffs in the future through the gradual build-up of the fund.
“TNB also wishes to inform that the impact of the implementation of the ICPT is neutral on TNB and will have no effect on its business operations and financial condition,” TNB said.