{
  "id": 9318069,
  "title": "TNB clarifies subsidy absorption a one-off contribution",
  "url": "https://urgent.news/2026/09/23/tnb-clarifies-subsidy-absorption-a-one-off-contribution",
  "topic": "world",
  "section": "World",
  "published": "2026-09-23T10:09:00.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/highlight/2026/09/23/tnb-clarifies-subsidy-absorption-a-one-off-contribution"
  },
  "original_language": "en",
  "account": "Tenaga Nasional Bhd (TNB) has announced a one-time allocation of RM150 million to cover extra electricity subsidies for households, aiming to alleviate concerns about the impact on its share price. During an analyst briefing, TNB clarified that the decision to absorb additional surcharges under the automatic fuel adjustment (AFA) mechanism is intended as a temporary measure to shield consumers from increased electricity bills. Management reiterated that this RM120-150 million contribution is a one-off corporate contribution from September to December 2026. However, TNB does not rule out future assistance to consumers if a similar situation occurs again, as it plays a crucial role as a government-linked company (GLC). The government recently expanded the exemption from the AFA surcharge to households consuming 800 kilowatt-hour (kWh) of power or less monthly, previously limited to those using under 600kWh. The government is also exploring a more permanent solution to address the current AFA design gap, though there is limited clarity on the new structure. TNB emphasized that the AFA framework applies a uniform rate across all consumers, unlike the previous imbalance cost pass-through (ICPT) mechanism, which permitted cross-subsidization and potentially better protection for domestic consumers and small to medium enterprises (SMEs). TNB maintains a \"hold\" rating with a target price of RM13.80. RHB Research supports this stance, noting that the subsidy is one-time, with the protection threshold reverting to 600kWh in January 2027. The financial impact may be less severe than anticipated, with TNB projecting that the RM150 million allocation is based on a \"high case\" assumption for fuel prices and foreign exchange in Q4. Given TNB's stock price decline of 12% from its recent high, RHB advises investors to consider accumulating the stock during periods of weakness. The research firm expects TNB to report improved second-half earnings due to a projected decline in the effective tax rate to 18% in Q4, which will largely offset the electricity subsidy allocation. RHB retains a \"buy\" rating on TNB shares with a target price of RM16.50, representing a 25% upside from the current price. As of the latest close, TNB's shares increased by four sen or 0.3% to RM13.14, resulting in a market capitalization of RM76.59 billion. TNB's stock has experienced a year-to-date decline of 4.6%.",
  "summary": "Tenaga Nasional said the move was aimed at cushioning households from higher electricity bills.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}