Tuesday, September 20, 2011

RHB Research: Breakup of Tenaga unlikely

KUALA LUMPUR: RHB Research Institute said the breakup of TENAGA NASIONAL BHD [] (TNB) is unlikely as long as the power giant does not have a full cost pass-through mechanism.

It said on Tuesday, Sept 20 that further gas supply disruptions would mean reduced profitability for the generation division.

'In comparison, TNB's other two divisions, i.e. transmission and distribution are the most profitable,' it said.

It was commenting on a news report that speculation of TNB breaking up its units has resurfaced as it faces an additional RM3 billion in costs from having to look for alternative sources of fuel for power generation due to a shortage in gas supply.

No comments:

Post a Comment