TNB has pledged to ensure uninterrupted electricity supply through the implementation of RP4.
KUALA LUMPUR: TNB announced that a new tariff schedule will be introduced with a base rate of 45.62 sen per kilowatt-hour (KwJ) for Peninsular Malaysia, scheduled to commence on July 1, 2025 under Regulatory Period 4 (RP4).
In Regulatory Period 3 (RP3) from 2022 to 2024, the base price is set at 39.95 sen per kilowatt-hour.
TNB in its statement to Bursa Malaysia yesterday stated that any difference from January to June 2025 will be paid using the Electricity Industry Fund (KWIE).
“The current electricity tariff, which has been in effect since 2014, will remain the same without any changes until June 30, 2025,” it said.
TNB said that the set rate of return remains at 7. 3 percent as before. This will help the company to make significant investments in the industry, ensuring a stable and sufficient supply of electricity to meet the growing demand.
He said the cost of generating electricity still constitutes the largest portion of the electricity tariff. Gas and coal are still the main sources of electricity generation at this time.
Any additional costs due to higher fuel prices for electricity supply will be borne through the Imbalanced Cost Transfer (ICPT) method.
“TNB remains neutral in this matter and there will be no impact on the company’s business operations or financial condition,” he said.
Recently, the government has agreed to implement RP4 under the Incentive Based Regulation (IBR) system from January 2025 to December 2027.
The national utility said this decision was communicated via a letter from the Energy Commission (EC) to TNB dated December 24, 2024.
He mentioned that the approved budget is RM42. 821 This comprises RM26. 554 billion for basic expenditure and RM16. 267 billion for unforeseen expenses.
“TNB said the total expenditure for RP4 is expected to provide significant economic benefits and help stimulate the national economy, as well as provide an electricity network to support the country’s energy transition.”
The approved operating expenditure is RM20. 782 This money is used to plan and implement activities and necessary maintenance for all TNB’s electricity infrastructure.
TNB said the decision to implement RP4 demonstrates the government’s commitment to the IBR system, which is essential to ensure a smooth and stable electricity supply industry.
“Through the implementation of RP4 under IBR, TNB pledges to provide safe and reliable electricity supply to customers, improve the quality of customer service, and support the country’s energy transition efforts,” it said.
