TNB faces questions on regulatory violations after 'unauthorised' tariff hike announcement

Tenaga Nasional Berhad (TNB) has come under regulatory scrutiny after the company recently announced to Bursa Malaysia an adjustment in electricity tariffs in Peninsular Malaysia.

The tariff increase, which had not been approved by the relevant authorities, has raised questions about possible breaches of regulations.

According to Bursa Malaysia's disclosure policy, issuers are required to disclose all material information to enable an informed investment decision.

Chapter 9 of the listing requirements stipulates six corporate disclosure policies that issuers must follow, including prompt disclosure of material information, thorough dissemination to the public, clarification, confirmation or denial of rumours or reports, response to unusual market activities, unwarranted sales promotional disclosure activities and insider trading.

Industry experts and market watchers warn that what transpired last month could affect investor confidence in Malaysia.

On Dec 26, TNB in a Bursa filing announced a 14% increase in base tariff for the period 2025-2027, sending the state-owned energy company's share price to a record high of RM14.94.

It claimed that the tariff adjustment had been approved by the government and the Energy Commission (ST) in a letter dated Dec 24, 2024, only to be denied by Deputy Prime Minister Fadillah Yusof, who is also the energy transition and water transformation minister.

The denial was followed by share price plunging to RM14.60 on Jan 3, 2025.

Fadillah's revelation that TNB had not been granted approval by either his ministry or the ST raised concerns, including the authenticity of the approval letter cited by TNB.

"Does the letter from ST really exist? If so, is it authentic? Was the letter issued by ST after going through the proper approval process or not?" asked government critic Eric See-To, a loyalist of former prime minister Najib Razak.

In the heat of the controversy, Prime Minister Anwar Ibrahim -  who also chairs the government's sovereign fund Khazanah Nasional, which owns TNB - assured that the electricity price hikes would not affect the majority of consumers.

So far, neither Bursa Malaysia nor the Securities Commission (SC), the bodies responsible for overseeing Malaysia's capital markets, have made any public statements or sanctions against TNB board members on the matter.

"The lack of clarity has left investors and analysts seeking answers about the regulatory implications of TNB's actions," said a local market analyst on condition of anonymity.

MalaysiaNow has contacted TNB and Bursa Malaysia for a response.

Meanwhile, an opposition MP cast doubt on the government's claim that it had not approved the hike.

"If it is true that there was no approval, there should be a thorough investigation into how and why TNB made this announcement," said Perikatan Nasional's Tasek Gelugor MP Wan Saiful Wan Jan.

"But I have to say that I have my doubts. I question whether it is true that no approval was given to TNB," he told MalaysiaNow.

Wan Saiful asked if the increase had indeed already been discussed but was reversed in a last minute about-turn by the government following public outrage.

"Is it simply that Anwar and his ministers made a mistake and are now trying to shift the blame to professionals in TNB?" he asked.

The tariff hike would mean that Malaysians would have to pay higher electricity bills for the second time in two years from June 2023.

There have been numerous complaints from the public about the increase in electricity bills, as well as from many SMEs who have been hit hard by the tariff hikes.

Anwar, who is also the finance minister, had previously said that households with high electricity consumption would no longer receive government subsidies.

This is despite questions still remaining over the mechanism for determining the financial status of households, as critics say that low and middle-income households and large families could also consume large amounts of electricity.