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All Tenaga Nasional Bhd (TNB) account holders, including domestic customers with a monthly consumption of 300kWh and below are eligible for the rebate from Jan 1 to June 30 in 2021. PETALING JAYA: The business community and household consumers rejoiced on an early Christmas goodie with the approval of the Imbalance Cost Pass-Through (ICPT) rebate of two sen per kilowatt hour (kWh) for the next six months. Socio-Economic Research Centre executive director Lee Heng Guie (pic below) said the rebate was welcomed relief for businesses and households that were struggling as the economy recovers. “This comes at a time when the economy and businesses are in the healing process post-pandemic. We are hopeful that the vaccine, which will be available soon, will kickstart the vaccination process and this will help inject optimism into our economic recovery. “With this rebate coming along, big or small, it will be a good relief if it helps businesses save and ease their operating cash flows, ” he said. Federation of Malaysian Manufacturers (FMM) president Tan Sri Soh Thian Lai said they welcomed the government’s decision on the rebate. He however, stressed that the limit for only 300kWh and below would not be sufficient for industries with heavy usage, especially during this critical time where most industries were severely affected by the pandemic. “We will schedule a meeting with the government to discuss this, ” he said. All Tenaga Nasional Bhd (TNB) account holders, including domestic customers with a monthly consumption of 300kWh and below are eligible for the rebate from Jan 1 to June 30 in 2021. This came on the back of the reduction in actual fuel costs for the period of July to December this year, consistent with the reduction in actual coal and gas prices for the power sector. For the six-month period, the average coal price in the global market was lower at US$58.6 per tonne as compared to the benchmark coal price set in the base tariff at US$75. The power sector gas price came in at RM21 per million British Thermal Unit (mmbtu), compared to the benchmark of RM27.20 per mmbtu. TNB added that the impact of the ICPT implementation is neutral on the group and will not have any effect on its business operations and financial position. TNB’s share price closed 10 sen or 0.95% higher at RM10.68 yesterday. “This decision was made following the uncertainty in demand outlook for 2021 and the instability of the current global fuel markets following the Covid-19 pandemic, ” TNB said in a filing with Bursa Malaysia yesterday. The ICPT is a mechanism approved by the government and implemented by the Energy Commission since Jan 1,2014 as part of a wider regulatory reform called the Incentive Based Regulation. The mechanism allows TNB to reflect changes in fuel and generation costs in consumer’s electricity tariff every six months. It is implemented according to Section 26 of Electricity Supply (Amendment) Act 2015. Any shortfall or excess in the ICPT will be funded or transferred to customers via the Kumpulan Wang Industri Elektrik fund to aid in the stabilisation of electricity tariff in the future via gradual build-up of the fund.

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