Power discount for six economic sectors to be funded by govt — TNB

The electricity rebate announced yesterday for six business sectors heavily impacted by the Covid-19 will be funded by the government, said Tenaga Nasional Bhd (TNB).

This will include contributions from the Electricity Industry Fund, the utility company said in response to inquiries by theedgemarkets.com.

TNB said the announcement of an Imbalance Cost Pass-Through rebate of two sen per kilowatt-hour (kWh) for all customers, including domestic customers, with monthly consumption of 300kWh and below will also be funded by the government in the same manner.

“The impact of the discount and the rebate is neutral on TNB as TNB’s electricity revenue will not be impacted. There will also not be any effect on TNB’s business operations and financial position,” the company said.

Prime Minister Tan Sri Muhyiddin Yassin announced yesterday that six business sectors nationwide — hotel operators, theme parks, convention centres, shopping malls, local airline offices, travel and tour agencies — would get a special discount of 10% on electricity bills from January to March.

Meanwhile, the two sen per kWh rebate was first announced on Dec 23, 2020 and will take effect from Jan 1 until June 30. This discount is equivalent to a reduction in electricity bills of up to 9%, Muhyiddin said yesterday.

Shares in TNB finished 0.98% or 10 sen lower at RM10.08 yesterday, valuing the company at RM57.5 billion. The counter saw 3.82 million shares traded.