KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has announced that the government will determine the electricity tariff rates and structure for the 2025-2027 regulatory period (RP4) by mid-2025. Until then, the current tariff rates and structure will remain in place in Peninsular Malaysia.
TNB officials have revealed that the base electricity tariff rate for the RP4 period is expected to rise by 14%, reaching 45.62 sen per kilowatt-hour. This increase is driven by a projected 24% surge in coal prices and a 34% rise in liquefied natural gas (LNG) prices over the three-year period.
“The final tariff adjustment set by the government next year could either be higher or lower, depending on various factors and information taken into consideration,” said Datuk Nazmi Othman, TNB’s Chief Financial Officer, during a media briefing.
He further emphasized that the government aims to shield consumers, with electricity tariff rates for approximately 85% of households likely to remain unchanged throughout the RP4 period.
TNB noted that around 70% of the base tariff rate is tied to generation activities in the power sector, influenced by the prices of fuel feedstocks like coal and LNG. At present, over 50% of Malaysia’s power generation capacity relies on coal, while about 20% depends on LNG.
In its recent announcement, TNB also revealed that under RP4, the total allowed capital expenditure (capex) is RM42.821 billion. This includes RM26.554 billion for base capex and RM16.267 billion for contingent capex. The company highlighted that this significant capex allocation will stimulate the national economy and prepare the electricity network to support Malaysia’s energy transition agenda.
Additionally, the allowed operating expenditure (opex) for RP4 is set at RM20.782 billion, which will fund essential operational an
Following the announcement, TNB’s shares surged by 68 sen, or 4.80%, reaching RM14.86, with a market capitalization of RM86.38 billion at 3:03 pm. The stock has gained more than 48% year-to-date.
