TNB: ICPT mechanism to have to impact on business operations

KUALA LUMPUR: The implementation of the Imbalance Cost Pass-Through (ICPT) mechanism will be neutral, and not affect the company’s business operations and financial position, according to Tenaga Nasional Bhd (TNB).

In a filing with Bursa Malaysia today, TNB said the Ministry of Energy Transition and Water Transformation’s (PETRA) recent announcement follows the government’s decision to continue the ICPT mechanism from July 1 to Dec 31, 2024.

“The decision was made to address the additional generation costs due to higher fuel prices used for electricity supply from Jan 1 to June 30, 2024.

“To date, the government has successfully implemented 20 cycles of ICPT since the mechanism’s introduction in 2015,” TNB said.

On June 29, PETRA announced that there would be no increase in electricity tariffs for all users in Peninsular Malaysia from July 1 to Dec 31, 2024.

Commercial and industrial users will experience a reduction in the ICPT rate of one sen per kilowatt-hour during this period, PETRA said. – Bernama