KUALA LUMPUR (May 27): Tenaga Nasional Bhd (TNB) projects a higher investment allocation to implement the incentive-based regulation (IBR) mechanism for the fourth regulatory period (RP4) (2025-2027) compared to RM21 billion for IBR RP3 (2022-2024).

Chief executive officer Datuk Megat Jalaluddin Megat Hassan said this was to meet the demand from new electricity users (supply project) including installing new electricity substations.

“Part of this allocation [capex] we also use to carry out improvements and replacement of TNB assets that need to be changed or replaced.

“Discussions for IBR RP4 have started with the Energy Commission [EC]. We hope it can be decided by the end of this year," he told the media after the signing ceremony on the Governance Improvement Report between the Anti-Corruption Commission (MACC), TNB and EC here on Monday.

As of last year, Megat Jalaluddin said IBR RP3 had already utilised a total of RM14 billion and it is expected that the balance will be fully utilised by the end of this year. 

The EC is the body responsible for regulating the country's energy sector, particularly the electricity and gas supply industry through pipelines in the peninsula. 

The EC's role is divided into three, namely economic regulation, technical regulation and safety regulation.

At the event, Megat Jalaluddin said TNB never stops trying to ensure the safety of all its strategic assets and always strengthens integrity among its employees to combat negative cultures such as corruption and embezzlement.

Through MACC's advisory services, with the consent of EC as the regulator, TNB will take several improvement measures including the installation of "barrel locks" on meter boxes at consumer premises that are considered high risk.

TNB plans to purchase 5,000 barrel locks in 2024 using the IBR RP3 allocation with installation scheduled in 2025.

"The keyless biometric system will also be installed in a guided manner on the 11 kilovolt (kV) electric substation or low voltage feeder pillar identified as high risk, involving 3,000 units. 

"In addition, TNB will implement CCTV installation online at the main entrance of substations and main distribution substations in high risk areas," he added.

While for the years 2025 to 2027, Megat Jalaluddin said the quantity of implementation for these initiatives is subject to the decision of IBR RP4 by the government.

He said TNB also uses drones which are currently still in pilot projects to carry out periodic inspections and maintenance of its transmission towers and places that are difficult to enter.

"The drones we use are also equipped with thermal sensors or heat detectors that can detect high electricity consumption in an area and can provide thermal images and record data based on the heat released into the air," he said.

This follows the revelation of the theft of electricity from bitcoin mining, which naturally consumes very high amounts of electricity.

According to TNB data, it suffered losses of up to RM2.3 billion for the period from 2018 to 2021.

“Through these measures including with the collaboration of MACC and EC, TNB will be able to further strengthen its integrity as the custodian of the nation's strategic assets, in line with its commitment to the environmental, social and governance (ESG) agenda, to ensure a better future for the planet and community," he added.
 

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