KUALA LUMPUR – The cabinet has agreed to reduce the basic average tariff for gas facilities for the second regulatory period (RP2) starting from January 1, 2023 to December 31, 2025.
The government sets these charges for each regulatory period as part of the country’s gas market regulatory framework under the incentive-based regulation framework.
Economy Minister Rafizi Ramli said the new RP2 tariff involves four gas facilities which are Regas Terminal (Sg Udang) Sdn Bhd and Pengerang LNG (Two) Sdn Bhd’s regasification terminals, Petronas Gas Bhd’s transmission pipeline and Gas Malaysia Distribution Sdn Bhd’s distribution pipeline.
“The setting of the average tariff for RP2, the income adjustment and the average tariff allowed for that period for Regas Terminal (Sg Udang) Sdn Bhd remains the same as the RP1 period at the rate of RM3.455/GJ)/day.
“And there is no income adjustment for the period from January 1, 2023 to December 31, 2023,” he said in a statement today.
Rafizi also said the average basic tariff for Pengerang LNG (Two) Sdn Bhd dropped by 9.2% at a rate of RM3.165/GJ/day compared to RM3.485/GJ/day in the RP1 period and there was no income adjustment for the period from January 1, 2023 to December 31, 2023.
Meanwhile, the average basic tariff for Petronas Gas Bhd also fell by 5.8% at a rate of RM1.063/GJ/day compared to RM1.129/GJ/day for the RP1 period.
“The average tariff allowed for the period from January 1, 2023 to December 31, 2023 is RM1.061/GJ/day after adjusting the excess income of RM0.002/GJ/day.
“The average basic tariff for Gas Malaysia Distribution remains as it was during the RP1 period at the rate of RM1.573/GJ/day. The average tariff allowed for the period from January 1, 2023 to December 31, 2023 is RM1.535/GJ/day after adjusting for excess income of RM0.038/GJ/day,” he explained.
Rafizi said the reduction in the average tariff for the RP2 period is expected to provide savings in terms of energy costs to the industry.
“It depends on the volume of gas consumption, the reduction in the average tariff of gas facilities is projected to translate into savings of between RM5.5 million and RM33.2 million for 2023.
“For the distribution segment according to user category – residential, commercial or industrial – savings are between RM4,000 and RM55.9 million for 2023,” he added. – Bernama, December 23, 2022
