KUALA LUMPUR: The government has approved the continued implementation of the Imbalance Cost Pass-Through (ICPT) mechanism for the period of July 1 until Dec 31, 2021.

       In a filing with Bursa Malaysia, Tenaga Nasional Bhd (TNB) said the government has decided to maintain an ICPT rebate of two sen per kilowatt hour (kWh) during the period of ICPT implementation for all customers, including domestic customers, with monthly consumption of 300 kWh and below.

       "This ICPT rebate is partly the result of overall reduction in actual generation costs for the period of January to June 2021,” it said.

       The utility giant said during the period of January to June 2021, there was a slight increase in average coal price in the global market at US$470.06 per tonne as compared to the benchmark coal price set in the base tariff at US$67.45 per tonne.

       TNB said starting from January 2020, the gas price was set based on reference market price (RMP), replacing the former two-tier gas pricing mechanism which comprises regulated gas price and liquefied natural gas price.

       It said the average RMP for gas in the first half of the year stood at RM17.16 per metric million British thermal unit (mmBTU), lower than the benchmark gas price for the year set in the base tariff at RM27.20/mmBTU.

       “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.

       “TNB also wishes to inform that the impact of ICPT implementation is neutral on TNB and will not have any effect on its business operations and financial position,” TNB said.