TNB tax claim will not be recovered through higher electricity tariffs

The Ministry of Finance (MOF) said electricity users will not face tariff increases to cover an additional tax claim against Tenaga Nasional Bhd (TNB). Corporate tax liabilities incurred by TNB are not automatically charged to consumers through their electricity tariffs, the ministry explained.

The clarification came in a written parliamentary reply to Datuk Che Mohamad Zulkifly Jusoh (PN-Besut). His question concerned the tax claim’s implications for electricity tariffs and dividends paid to shareholders.

MOF said the claim leaves TNB’s capacity to continue dividend payments unchanged. Such payments depend on its dividend policy, cash position and financial performance.

In Peninsular Malaysia, tariff determination operates under the Incentive-Based Regulation (IBR) framework, with government approval and review required, the ministry said. It added that the government would maintain consumer protection through existing regulatory arrangements for tariffs while ensuring TNB can supply electricity reliably and safely.