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Is TNB a profiteer? Where is the demi rakyat dan negara (for people and country)?
TNB to raise tariff by 14% in July but pays its CEO RM4.2 million a year!
KUALA LUMPUR, Dec 28, 2024: When a company reports annual profits of billions of Ringgit, and pays its Chief Operating Officer (CEO) RM4.2 billion annually, do you think the tariff hike is justified?
One such company is Malaysia’s Tenaga Nasional Berhad (TNB), the country’s national power producer.
It pays its CEO RM4.2 million annually but is now planning to hike electricity tariff by 14% in July.
Is this justification for price hikes in Malaysia? The so-called Madani Unity Government seems to think so!
Tenaga Nasional Bhd's (TNB) (KL:TENAGA) net profit for the second quarter ended June 30, 2024 (2QFY2024) jumped more than fourfold to RM1.45 billion from RM327.9 million a year ago, as it recorded higher electricity sales, a favourable foreign exchange translation, and lower net finance costs. For image info, go to https://theedgemalaysia.com/node/724832
Tell me this not profiteering?
And this is what Malaysia's 10th Prime Minister Anwar Ibrahim said about the impending TNB tariff hike: https://www.youtube.com/watch?v=QagD1xXMdzc
But, won't the hike cause a domino effect on costs and prices of all goods and services?
No News Is Bad News reproduces below a news report posted by The Coverage on the matter:
TNB Tariff Hike By 14% In July 2025 And Yet TNB CEO Earns RM 4.2 Million Annually
27 December, 2024
Pendapatan Tahun 2022 Presiden & CEO TNB
1. Gaji =RM1,560,000
2. EPF, Bonus, Elaun etc =RM2,616,780
3. Benefits =RM107,519.60
Total Pendapatan =RM 4,284,299.60
Tenaga Nasional Bhd has proposed a new tariff schedule with a base tariff of 45.62 sen per kilowatt-hour for Peninsular Malaysia under Regulatory Period 4 (RP4) which will be implemented from 1 July 2025 to December 2027.
It’s a 14.2% increase from the current base tariff of 39.95 sen/kWh between 2022 and 2024 under RP3.
However, we don’t need to go back to candles and hand fans yet. There’s a 6-month respite because the Electricity Industry Fund will cover the difference from January to June 2025 while consumers adjust to the new tariff.
Consumers will continue paying the current electricity tariff which has been in place and unchanged since 2014 until 30 June 2025.
TNB said the RP4 provides a transparent regulatory framework, advocates cost efficiencies, and ensures the financial and operational sustainability of the system and industry.
In addition, TNB said the regulatory rate of return has been maintained at 7.3% as per RP3, which enables the utility firm to make essential investments in the industry to ensure a continuous and reliable electricity supply to meet increasing demand.
Generation costs remain the largest component of the electricity tariff since gas and coal continue to be the primary fuel sources for electricity generation during this time.
Any additional generation costs resulting from higher fuel prices for electricity supply will be passed through via the Imbalance Cost Pass-Through (ICPT) mechanism.
Source : Datuk Jahat
The previous chairman, Tan Sri Leo Moggie, had received RM876,790.57 or RM73,065.88 a month in fees, allowances and other emoluments, according to TNB’s annual report filed with Bursa Malaysia.
Source : Malay Mail
Starting next July, the base electricity tariff in Peninsular Malaysia will be raised by 14.2% to 45.62 sen per kilowatt-hour (kWh), along with a new tariff schedule.
The change will take place under the three-year Regulatory Period 4 (RP4) that will be effective from Jan 2025 to Dec 2027. Under the RP3 2022-2024, base tariff was set at 39.95 sen/kWh.
However, for the first six months of RP4 until June 30, 2025, there will be no change in the electricity tariff rate and tariff structure.
This means consumers are given six months to adjust to the new base tariff.
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