Professional Documents
Culture Documents
9 OCTOBER 2014
OBJECTIVE
Regulated price of natural gas vs. market price of fuel oil since 1995
March 2009:
Piped Gas Price to Power Sector
=RM10.70/mmBtu
Piped Gas Price to Large Industry
(>2mmscfd) = RM15.35/mmBtu
Piped Gas Price to GMB(<2mmscfd)
= RM11.05/mmBtu
GMB average tariff= RM15.00/mmBtu
Note:
Gas Price Formula for Power
Sector until April 1997
= 1.04xMFO price
Gas Price Formula for Non-Power
Sector untilSept 2002
= 1.07xMFO price
June 2008:
Piped Gas Price to Power Sector
=RM14.31/mmBtu
July 2008:
Piped Gas Price to Large Industry
(>2mmscfd) = RM23.88/mmBtu
Piped Gas Price to GMB(<2mmscfd)
= RM17.99/mmBtu
GMB average tariff= RM22.06/mmBtu
October 2002:
Piped Gas Price to Large Industry
(>2mmscfd) = RM11.32/mmBtu
Piped Gas Price to GMB(<2mmscfd)
= RM9.40/mmBtu
GMB average tariff= RM12.87/mmBtu
June 2011:
Piped Gas Price to Power
Sector
=RM13.70/mmBtu
Piped Gas Price to Large
Industry (>2mmscfd)
= RM18.35/mmBtu
July 2011:
Piped Gas Price to
GMB(<2mmscfd)
= RM14.05/mmBtu
GMB average tariff
= RM16.07/mmBtu
Jan 2014:
LNG Price to Power
Sector = RM41.68/mmBtu
Piped Gas Price to Power
Sector = RM15.20/mmBtu
April 2014:
LNG Price to Non-Power
Sector = RM44.88/mmBtu
Piped Gas Price to Large
Industry (>5mmscfd)
= RM19.85/mmBtu
Piped Gas Price to
GMB(<5mmscfd)
=RM15.55/mmBtu
GMB average tariff
= RM19.32/mmBtu
LNG Cost
Delivery Cost
As of Jan 2014 :
Power sector price
- RM41.68/mmBtu
Non-power sector
price
- RM44.88/mmBtu
Shipping
X
+
Discount Factor
Discount:
Power sector - 15%
Non-power sector - 10%
Regasification
Discounted Gas
Price
+
Transmission
3.92
14.87%
4.99 sen/
kWh
LNG
33.54
2013
Gas price
Share of
increase
78.6%
LNG: RM 41.68
per mmBTU
Piped gas:
increased to
RM15.20/mmBTU
from
RM13.70/mmBTU
Coal
3.4%
Non-Fuel
2014
18%
INCENTIVE-BASED REGULATION
OF ELECTRICITY TARIFF
sen/kWh
Other Generation
Specific Costs - 28%
Distribution
21%
Transmission
9%
Single Buyer Operation
Grid System Operation
1%
8.24
3.66
0.24
38.53 sen/kWh
Electricity Base
Tariff Effective
1st January 2014
sen/kWh
Imbalance Cost
Pass-Through (ICPT)
Base Tariff of
38.53 sen/kWh
for the First
Regulatory
Period (FY 2014
to FY 2017)
Base Tariff
FY2014
FY2015
FY2016
FY2017
Regulatory Period
Jan
2014
Approval by the
Government
Approval by the
Government [1 + 2]
i. ST Board Approval,
ii. Stakeholders
Jan
Dec 2015
Jan Mac
April
Nov- Jan
Oct Dec 2016
consultation and
TNB to provide
audited actual fuel
cost for the period
Jan Jun 2014 (2)
for verification by ST
Verification
Committee
10
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Jan 11
Feb 11
Mar11
Apr 11
May 11
June 11
July 11
Aug 11
Sep 11
Oct 11
Nov 11
Dec 11
Jan 12
Feb 12
Mar 12
Apr 12
May 12
June 12
July 12
Aug 12
Sep 12
Oct 12
Nov 12
Dec 12
Jan 13
Feb 13
Mac 13
Apr 13
May 13
June 13
July 13
Aug 13
Sep 13
Oct 13
Nov 13
Dec 13
Jan 14
Feb 14
Mac 14
Apr 14
May 14
June 14
July 14
RM/mmBtu
90
80
Diesel
70
60
LNG CIF Japan
50
MFO Price
40
LNG ex-Bintulu - Power Sector
30
20
Gas Price to PGB
12
ICPT
(Period 2: Jul Dec 2014)
15.20
15.20
Forecast Price
15.20
16.70
41.68
41.68
LNG
48.77
47.65
Actual Price
COAL
87.50
87.50
72.76
76.52
DISTILLATE
& MFO
66.81
REDUCTION IN
CAPACITY PAYMENT
OTHER
GENERATION COSTS 1
Note 1: Other generation costs refers to RE Displaced Cost, variations in VOR, energy payment hydro, variation in
capacity payment, IPP Track 2 savings, interconnection cost
Projected Tariff Increase based on projected LNG and Piped Gas Prices
in the IBR 1st Regulatory Period, sen/kWh
RM Million
6
5
4
15.20
16.70
18.20
19.70
21.20
1.39
1.67
20.00
15.00
0.68
1.39
Piped Gas
Jan 2014
25.00
1.52
2
1
24.20
22.70
1.63
0.51
Jul 2014
30.00
1.24
LNG
1.02
1.53
2.04
3.06
2.55
10.00
3.57
5.00
-
Jan 2015
Jul 2015
Jan 2016
Jul 2016
Jan 2017
Jul 2017
ICPT in sen/kWh
+1.43
+2.41
+2.92
+2.72
+4.07
+4.30
+5.24
38.53
40.52
40.94
41.45
41.25
42.60
42.83
43.77
Assumptions:
1. Coal price assumed at 87.50 USD/mt i.e. no variation in coal costs
2. Sales volume are extracted from the Revenue Requirement Model (JPPPET April 2012)
3. LNG price is assumed at RM 47.65/mmBTU as per Period 1 (Jan Jun 2014) for 1st regulatory period
4. Assumes no pass through for the Other Generation Specific Components in the ICPT
5. Period Jan Jun 2014 is based on increase in LNG price only
Period
Beginning
15
Government Decision
4 May 2011
In principle Jemaah Menteri agreed for the Special Industrial Tariff (SIT)
discount reduces gradually
15 July 2013
Majlis Ekonomi agreed for the Special Industrial Tariff (SIT) discount to be
reduced gradually by 2%
16
TIK perlu disemak semula agar selaras dengan strategi kerajaan: merasionalisasi subsidi dan mengasingkan subsidi daripada penggunaan
tenaga
menggalakkan industri dan pengguna untuk mengguna tenaga secara
cekap dan meminimum pembaziran
mewujudkan industri yang lebih berdaya saing di pasaran global
menstrukturkan semula TIK untuk menggalakkan Kecekapan Tenaga
kepada pengguna melalui:
i. Menyemak semula kriteria kelayakan TIK
ii. Mengenalpasti industri yang layak menerima TIK
Consultation process
18 Apr
2012
24 Apr
2012
16 May
2012
22 May
2012
Project
approved
by
Sponsor
Brainstorm
Session
Input
Gathering
from
Industrial
Players
Pre-Lab
Session
30 & 31
May
2012
Lab
Session
04 Jul 2012
09 Aug 2012
Stakeholders
Syndication
Session
Sponsor
Syndication
Session
12%
10%
Diskaun TIK
8%
6%
4%
2%
0%
Tariff E3s
10.30%
8.30%
6.30%
4.30%
0.00%
Tariff E2s
8.30%
6.30%
4.30%
2.30%
0.00%
Tariff E1s
4.80%
2.80%
0.80%
0.00%
0.00%
Tariff Ds
3.00%
3.00%
3.00%
3.00%
0.00%
Note: SIT discount rate for tariff Ds is remained until EToU is available for the category on 1 Jan 2017.
19
THANK YOU
20