Govt Says TNB's Profit Margin Regulated At 7.3% Till 2027
Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir said TNB's profit rate remains at 7.3 per cent in RP4, similar to the rate set during the second regulatory period in 2018.
'If TNB profits exceed the regulated rate, the excess will be returned to consumers through the Electricity Industry Fund,' he said.
He was responding to a question from Lim Guan Eng (Harapan-Bagan) on TNB's annual profits and the additional gains earned following the 14.2 per cent tariff rise for the commercial sector on July 1.
Lim also asked whether the tariff hike could be postponed or staggered, given that TNB's profits rose by over 70 per cent last year.
Akmal Nasrullah said the 7.3 per cent profit rate is reasonable in light of TNB's investments to upgrade and strengthen the national grid, especially to support the Asean Power Grid, the construction and maintenance of power plants, the installation of smart meters, and the digitalisation of the energy system.
He added that this set profit rate is a balanced approach to ensure TNB remains stable as a utility company capable of providing better consumer services.
'It also ensures a reasonable return to TNB's major shareholders, which include government investment entities such as Khazanah Nasional Bhd, the Retirement Fund (KWAP), and the Employees Provident Fund (EPF). TNB paid RM15.75 billion in dividends between 2018 and 2023,' added Akmal Nasrullah.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
BusinessToday
14 hours ago
- BusinessToday
ASEAN Ministers Unite To Accelerate Regional Power Grid, Secure Billions In Funding
ASEAN's top ministers on energy, finance, and economics have come together to advance the development and financing of the ASEAN Power Grid (APG), a crucial initiative to bolster the region's energy security and economic integration. The Ministerial Interface Meeting, held on August 14, 2025, served as a strategic platform to harmonise sectoral priorities and accelerate the APG, which is recognised as an enabler of regional energy security and a key driver of sustainable economic growth. The meeting affirmed the APG's role in realizing the 'ASEAN 2045: Our Shared Future' vision. New Financing Initiative to Spur Development A major outcome of the meeting was the support for the newly developed ASEAN Power Grid Financing Initiative (APGF), a platform designed to coordinate and mobilize funding for cross-border power projects. The initiative is being developed with the backing of the Asian Development Bank (ADB) and the World Bank (WB). The meeting highlighted significant financial commitments from these institutions: The ADB announced its readiness to invest up to $10 billion of its own resources over the next decade. The World Bank will contribute through its $2.5 billion 'Accelerating Sustainable Energy Transition Multi-Phase Programmatic Approach (ASET-MPA)' program. The ministers stressed the need for member states to strengthen their regulatory frameworks to effectively integrate these investments and ensure they align with the ASEAN Interconnection Masterplan Study (AIMS) to deliver tangible benefits across the region. Enhancing Connectivity The meeting also recognised existing power interconnection projects like the Lao PDR-Thailand-Malaysia-Singapore Power Integration Project (LTMS-PIP) and the Brunei-Indonesia-Malaysia-Philippines Power Integration Project (BIMP-PIP) as vital steps toward a fully integrated grid. Additionally, the formation of the APGF Working Group (APGF WG) and the Partnership for ASEAN Connectivity on Energy (PACE) was announced. These groups will act as key platforms to connect project sponsors with financial partners and coordinate support from development partners and private sector investors, ensuring a robust pipeline of bankable projects.
New Straits Times
2 days ago
- New Straits Times
Decades-long wait ends as Melaka hands over 47 approval letter for railway reserve land
ALOR GAJAH: After more than 30 years, the issue involving railway reserve land in Pengkalan here has been resolved, with the Melaka government handing over 47 approval letters for state land application, said Chief Minister Datuk Seri Ab Rauf Yusoh. He said the handover ceremony reflected the state government's concern in understanding the community's needs and ensuring that every policy and development project delivers a positive impact on the people's lives. "A total of 45 applications involved the Pengkalan railway reserve land that had been delayed for three decades, and two plots for temples. "Also approved was Tenaga Nasional Bhd's (TNB) application to place a substation on Plot 1, Mukim Kelemak, Alor Gajah district, which will provide electricity to residential, commercial, hospital, and government office areas, benefiting more than 3,050 users," he said today. He said this at the handover of the approval letters in conjunction with the Wakil Rakyat Untuk Rakyat (WRUR) programme for the Rembia state constituency, which was also attended by the coordinator for the constituency, Datuk Fairul Nizam Roslan. He said this year, 96 state land applications have been approved in the district, followed by the issuance of Notice 5A by the land administrator. Notice 5A is an official document informing applicants of the fees due, including document preparation and registration costs, that they must pay to obtain the land titles. "It is on this land that new homes will be built, gardens will be filled with flowers, children will run and play, and families will gather every weekend. "Its value is not merely measured in square feet, but in the space to build a life and pass down a legacy of peace to future generations," he said. He said the state government imposes land premiums below market rates, ranging between RM9,000 and RM25,000, depending on the land size, compared to hundreds of thousands of ringgit. "A special five per cent discount is offered to Notice 5A recipients who settle payment within three months, subject to the condition that no extension requests or appeals for premium reduction are made," he added. – Bernama
The Sun
2 days ago
- The Sun
Melaka resolves 30-year railway land issue with 47 approval letters
ALOR GAJAH: The Melaka government has resolved a 30-year-old issue concerning railway reserve land in Pengkalan by distributing 47 approval letters for state land applications. Chief Minister Datuk Seri Ab Rauf Yusoh stated that the handover reflects the state's commitment to addressing community needs and ensuring policies positively impact lives. He confirmed that 45 applications involved the long-delayed Pengkalan railway reserve land, while two were allocated for temple use. Tenaga Nasional Berhad (TNB) also received approval to build a substation in Mukim Kelemak, Alor Gajah, benefiting over 3,050 users in residential, commercial, and government areas. The approvals were announced during the Wakil Rakyat Untuk Rakyat (WRUR) programme for the Rembia constituency, attended by coordinator Datuk Fairul Nizam Roslan. This year, 96 state land applications in Alor Gajah district have been approved, with Notice 5A issued to inform applicants of payable fees for land titles. Ab Rauf emphasised that the land will enable new homes, community spaces, and family gatherings, valuing it beyond monetary terms. The state government offers land premiums below market rates, ranging from RM9,000 to RM25,000, based on plot size. A 5% discount is available for Notice 5A recipients who settle payments within three months without requesting extensions or premium reductions. - Bernama
