TNB Profit Rate Regulated by Government at 7.3% for RP4

Tenaga Nasional Bhd (TNB) profit rate is regulated by the government at 7.3% during the fourth regulatory period (2025-2027). If TNB's profits exceed this rate, the excess will be returned to consumers through the Electricity Industry Fund. The profit rate is considered reasonable given TNB's investments in upgrading the national grid and digitalizing the energy system.

KUALA LUMPUR: The profit rate for Tenaga Nasional Bhd (TNB) has been regulated by the government at 7.3% for the fourth regulatory period (RP4) from 2025 to 2027. This rate, set by Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir, remains consistent with the profit margin from the second regulatory period in 2018 [1].

If TNB's profits exceed the regulated 7.3% rate, the excess will be returned to consumers through the Electricity Industry Fund. This arrangement ensures that TNB’s profits are kept in check, benefiting consumers directly. The minister noted that the profit rate is reasonable given TNB's substantial investments in upgrading and strengthening the national grid, particularly to support the ASEAN Power Grid initiative, the construction and maintenance of power plants, the installation of smart meters, and the digitalization of the energy system [1].

Akmal Nasrullah also highlighted that the 7.3% profit rate is a balanced approach, ensuring TNB remains a stable utility company capable of providing better consumer services while providing a reasonable return to TNB's major shareholders, including government investment entities such as Khazanah Nasional Bhd, the Retirement Fund (KWAP), and the Employees Provident Fund. TNB paid RM15.75 billion in dividends between 2018 and 2023 [1].

Separately, shares of New Zealand's T&G Global (TGG) rose significantly, hitting an over-2-year high on July 1, 2025. The stock gained as much as 6.7% to NZ$2.4, its highest level since December 21, 2022. The company reported a half-year net profit after tax of NZ$1.7 million ($1.01 million) compared to a loss of NZ$18.6 million a year earlier. Revenue for the period was NZ$920.6 million, up from NZ$820.1 million the previous year [2].

References:

[1] https://www.thestar.com.my/business/business-news/2025/08/13/tnb-profit-rate-regulated-by-the-govt-maintained-at-73---akmal-nasrullah
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3U004C:0-new-zealand-s-t-g-global-hits-over-2-1-2-year-high-on-hy-profit/