Tuesday, 9 July 2013

Govt to implement Fuel Cost Pass-Through mechanism in 2014

The government will be implementing the Fuel Cost Pass-Through (FCPT) mechanism through Tenaga Nasional Berhad (TNB) in 2014, said Deputy Minister of Energy, Green Technology and Water Datuk Seri Mahdzir Khalid in the Dewan Rakyat today. “The Energy Commission is in the midst of determining the electric tariffs based on the incentive-based regulation (IBR) to encourage a more efficient utility operations through an incentive and penalty system to reduce the operational costs. “FCPT is a component of IBR and will be implemented beginning 2014, where any changes in the fuel prices will be channelled directly to consumers. “Changes in the fuel (bahan api) will be reflected in the tariff prices billed to the consumers taking into account the country’s economic performance as well as the TNB’s performance while ensuring the people will not be burdened.” (NST)

Source: CIMB Daybreak - 09 July 2013

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