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by HIDAYATH HISHAM
THE government will keep Tenaga Nasional Bhd’s (TNB) profit limit at 7.3% for the three-year Regulatory Period 4 (RP4), continuing a rate that has been in place since 2018.
Energy Transition and Water Transformation Deputy Minister Akmal Nasrullah Mohd Nasir said any earnings above the set limit will be redirected to consumers through the Electricity Industry Funds (KWIE).
“The capped profit rate has been in place since RP2 in 2018, and any excess earnings will be channelled back to the people through KWIE,” he told Dewan Rakyat today.
Akmal Nasrullah was replying to Bagan MP Lim Guan Eng, who asked about TNB’s yearly profits and the potential additional revenue following the July 1 electricity tariff hike for the commercial sector.
He explained that the limit is aligned with TNB’s capital requirements for strengthening the national grid to support the ASEAN Power Grid (APG), constructing and maintaining power plants, installing smart meters, digitalising the electricity network and increasing renewable energy (RE) integration in line with the country’s energy transition goals.
Akmal Nasrullah added that Khazanah Nasional Bhd, the Retirement Fund (KWAP) and the Employees Provident Fund (EPF) are among TNB’s largest shareholders, with these government-linked investment companies (GLICs) receiving RM15.75 billion in dividends between 2018 and 2023.
In response to a supplementary question from Padang Besar MP Rushdan Rusmi on whether the ministry would consider a “reserve tariff” or “returnable tariff” mechanism to directly rebate profits beyond the cap to consumers instead of via dividends or corporate social responsibility (CSR) programmes, Akmal Nasrullah said the approach was already in place.
“For example, those using less than 600 kilowatt-hour (kWh) will receive energy efficiency incentives starting now. Secondly, to further assist groups that use energy efficiently, retail costs do not need to be paid,” he said.
The minster said the tariff structure is being rebalanced so that more allocations go to infrastructure, compared to the previous model where nearly 90% covered energy costs and just 9% was set aside for infrastructure.
The target, he said, is to keep energy costs at 40% to 50%, with the exact figure to be confirmed.
“In principle, protection and returning benefits to the people have been implemented from the start. We have planned that for the next three years, users below the mentioned threshold will not be affected by automatic fuel adjustment.
“Under this plan, if examined closely, 85% of TNB’s users, especially domestic ones, are already enjoying reductions when using electricity at the same consumption level because these incentives were provided earlier,” he said.
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