Consumers to pay more for electricity, but TNB's earnings won't be higher

Minister explains: Ongkili says although liquefied natural gas and coal prices have reduced significantly, consumers cannot enjoy the full benefits of lower rebates because of the weaker ringgit and the Government’s continuous subsidy in the power industry.

PETALING JAYA: Despite consumers in Peninsular Malaysia having to pay 0.73 sen per kilowatt hour (kWh) more for electricity for the next six months beginning Jan 1, the impact of the rebate’s implementation is neutral on Tenaga Nasional Bhd (TNB).

This is because the utility company will return some RM762mil in net savings to electricity consumers in the first half of next year, which translates into a rebate of 1.52 sen per kWh from 2.25 sen per kWh now. TNB, in a stock exchange filing yesterday, said the rebate would be applicable to all consumers except domestic consumers with a monthly consumption of 300kWh or below.