Investor Presentaiton
INCENTIVE BASED REGULATION (IBR)
Base Tariff
i.
Base tariff is determined by the regulator for every 3 years*, taking into account:
OPEX, depreciation of regulated assets & tax expenses of regulated entities -
Transmission, Grid System Operator, Single Buyer operation, Distribution
Network and Customer Services/Retail
Power purchase cost charged by generators to the Single Buyer
ii.
iii.
Return on regulated assets (rate base) of regulated entities
Imbalance Cost Pass-Through (ICPT)
ICPT is 6-monthly pass-through
mechanism of variations in uncontrollable
fuel costs and other generation specific
costs (imbalance cost) incurred by utility
for the preceding 6-month period
ICPT Surcharge
Base tariff
ICPT Rebate
* Current regulatory period, RP2 extension/interim year, is a one-year extension of RP2. The decision by EC was made
due to the uncertainty in demand outlook for 2021 and the instability of the current global fuel markets following the
COVID-19 pandemic.
RP2 extension / interim year parameters
Average Tariff by Entities (sen/kWh)
Base tariff for RP2 Extension Year (2021)
(sen/kWh)
7.81
1.55
4.13
25.80
0.10
0.06
3.9%
19.8%
0.3%
0.2%
10.5%
65.4%
Average Tariff by Entities (sen/kWh)
39.45
Commercial
46.93
47.92
39.45
Base Tariff
38.53
36.85
Industrial
36.15
32.95
Domestic
31.66
Single Single Grid
Grid
Buyer Buyer System
Distribution
Network
Retail
Base Tariff
Generation Operations Operator
■RP2 / RP2 Extension Year (2021) ■ RP1
Fuel Parameters
Year 1
Year 2
Year 3
Other Parameters
COAL
WACC
USD67.45/MT @ RM4.212/USD
RP2: USD75.00/MT (RM14.47/mmbtu
@ RM4.212/USD)
7.3%
RP2: 7.3%
GAS
RM27.20/mmbtu (Jan'21 – Dec'21)
RP2:
RM24.20/mmbtu (Jan'18 - Jun'18)
RM25.70/mmbtu (Jul' 18 - Dec'18)
i.
ii.
iii.
RM27.20/mmbtu (Jan'19 - Dec'20)
OPEX
RM6.30bn
(approved OPEX)
RP2 RM18.2bn
(Avg. yearly: RM6.07bn)
Regulated
Asset Based
(RAB)
TARIFF
39.45 sen/kwh
RP2: 39.45 sen/kwh
CAPEX
RM7.3bn
(approved CAPEX)
RP2 RM18.8bn
(Avg. yearly: RM6.63bn)
RM62.4bn
(Expected closing RAB 2021)
RP2 closing: RM59.1bn
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