Gas Malaysia ups natural gas tariff
Gas Malaysia Bhd has announced a higher average effective natural gas tariff for the non-power sector in Peninsular Malaysia at RM32.92 per MMBtu, which is 0.7% higher than the current RM32.69 per MMBtu. The revision will be effective from Jan 1, 2019 to June 30, 2019. The group told the stock exchange that the government has issued an instruction for the company to effect the natural gas tariff revision starting early next year. The average base tariff will be set at RM32.69 per MMBtu. Under the gas cost pass through (GCPT) mechanism, a surcharge of RM0.23 per MMBtu will apply to all tariff categories for the period beginning Jan 1 to June 30, 2019. This translates to an average effective tariff of RM32.92 per MMBtu. However, for Category A (Residential), the effective tariff rate fell 0.34% to RM23.72 from RM23.80 per MMBtu. Gas Malaysia said while the tariff revision has no material impact on its business operations, it is expected to contribute positively towards its financial position for the financial year ending Dec 31, 2019. To note, the government has prescribed the Incentive-Based Regulation (IBR) framework which sets the base tariff for a regulatory period of three years from January 2017 and allows changes in the gas costs to be passed through via the GCPT mechanism every six months. Gas Malaysia shares closed 0.74% or two sen lower at RM2.69 with 547,300 shares transacted.