KUALA LUMPUR, Dec 27 — Tenaga Nasional Bhd (TNB) announced that the government will determine electricity tariff rates and the tariff structure for the regulatory period 2025-2027 (RP4) by mid-2025. Until then, the current rates and tariff structure will remain unchanged in Peninsular Malaysia.
According to The Star, TNB officials had said the base tariff rate for electricity in the RP4 period is expected to increase by 14 per cent, reaching 45.62 sen per kilowatt hour, driven by a projected 24 per cent rise in coal prices and a 34 per cent increase in liquefied natural gas (LNG) prices over the next three years.
“The government wants to protect consumers and the electricity tariff rate for about 85 per cent of households will likely remain unchanged over the RP4 period,” Datuk Nazmi Othman, chief financial officer at TNB was quoted as saying in a media event today.
Approximately 70 per cent of the base tariff rate is linked to generation activity in the power sector, which is influenced by the prices of fuel feedstocks like coal and LNG. Currently, more than 50 per cent of the country’s generation capacity relies on coal, with around 20 per cent depending on LNG, as reported by The Star.
In its announcement on Thursday, TNB revealed that the approved capital expenditure (capex) for RP4 totals RM42.821 billion, which consists of RM26.554 billion in base capex and RM16.267 billion in contingent capex. Additionally, the approved operating expenditure (opex) is RM20.782 billion, which will support essential planning and maintenance activities for all of TNB’s electrical infrastructure.
