TNB can maintain dividends despite wider bill protection, says Fadillah
The utility will invest RM12 billion in 2027 to support economic development needs and growing energy demand, the minister said.
Widening electricity bill protection for domestic customers until December 2026 will leave Tenaga Nasional Bhd (TNB) able to honour its dividend commitments, according to Deputy Prime Minister Datuk Seri Fadillah Yusof.
Pointing to the interim dividend paid in October, Fadillah said TNB had demonstrated its commitment to shareholders. He also cited careful management of finances and cash flow as supporting continued operations.
Fadillah said TNB would undertake RM12 billion in investment in 2027 to meet development requirements and increasing energy demand. Separately, the company has approved RM43 billion in capital expenditure through the Incentive-Based Regulation mechanism. That allocation covers the fourth regulatory period, from 2025 to 2027, and is intended to reinforce the grid and improve long-term supply security.
On the market reaction to the bill-protection announcement, he said TNB lost RM1.3 billion in market capitalisation on Sept 18 as its shares declined from RM13.32 to RM13.04. He attributed the fall to concerns about extra costs, an assumed revenue decline of 2% to 3% for 2026, and uncertainty about automatic fuel adjustment and recovering costs.
The subsequent share recovery indicated that investors’ confidence had returned, Fadillah said. The energy transition and water transformation minister was wrapping up his ministry’s policy-level debate on the Supply Bill 2027 (Budget 2027) in the Dewan Rakyat.
