Cover Image

Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model

One of Malaysia Electricity Supply Industry (MESI) objectives is to ensure Tenaga Nasional Berhad (TNB) economic viability based on a fair economic electricity pricing. In meeting such objective, a framework that investigates the effect of cost of service (COS) on revenue is in great need. This pape...

Full description

Saved in:
Bibliographic Details
Main Author: Dr. Wan Nur Rahini Aznie
Format: Article
Language:English
Published: Universiti Sains Islam Malaysia 2017
Online Access:http://ddms.usim.edu.my:80/jspui/handle/123456789/15460
Tags: Add Tag
No Tags, Be the first to tag this record!
id my.usim-15460
record_format dspace
spelling my.usim-154602017-11-17T08:51:13Z Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model Dr. Wan Nur Rahini Aznie One of Malaysia Electricity Supply Industry (MESI) objectives is to ensure Tenaga Nasional Berhad (TNB) economic viability based on a fair economic electricity pricing. In meeting such objective, a framework that investigates the effect of cost of service (COS) on revenue is in great need. This paper attempts to present a conceptual framework that illustrate the distribution of the COS among TNB’s various cost centres which are subsequently redistributed in varying quantities among all of its customer categories. A deep understanding on the concepts will ensure optimal allocation of COS elements between different sub activities of energy production processes can be achieved. However, this optimal allocation needs to be achieved with respect to the imposed TNB revenue constraint. Therefore, the methodology used for this conceptual approach is being modelled into four steps. Firstly, TNB revenue requirement is being examined to ensure the conceptual framework addressed the requirement properly. Secondly, the revenue requirement is unbundled between three major cost centres or business units consist of generation, transmission and distribution and the cost is classified based on demand, energy and customers related charges. Finally, the classified costs are being allocated to different customer categories i.e. Household, Commercial, and Industrial. In summary, this paper proposed a conceptual framework on the cost of specific services that TNB currently charging its customers and served as potential input into the process of developing revised electricity tariff rates. On that purpose, the finding of this COS study finds cost to serve customer varies with the voltage level that customer connected to, the timing and the magnitude of customer demand on the system. This COS conceptual framework could potentially be integrated into a particular tariff structure and serve as a useful tool for TNB. 2017-11-17T08:51:13Z 2017-11-17T08:51:13Z 2017 Article http://ddms.usim.edu.my:80/jspui/handle/123456789/15460 en Universiti Sains Islam Malaysia
institution Universiti Sains Islam Malaysia
building USIM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universit Sains Islam i Malaysia
content_source USIM Institutional Repository
url_provider http://ddms.usim.edu.my/
language English
description One of Malaysia Electricity Supply Industry (MESI) objectives is to ensure Tenaga Nasional Berhad (TNB) economic viability based on a fair economic electricity pricing. In meeting such objective, a framework that investigates the effect of cost of service (COS) on revenue is in great need. This paper attempts to present a conceptual framework that illustrate the distribution of the COS among TNB’s various cost centres which are subsequently redistributed in varying quantities among all of its customer categories. A deep understanding on the concepts will ensure optimal allocation of COS elements between different sub activities of energy production processes can be achieved. However, this optimal allocation needs to be achieved with respect to the imposed TNB revenue constraint. Therefore, the methodology used for this conceptual approach is being modelled into four steps. Firstly, TNB revenue requirement is being examined to ensure the conceptual framework addressed the requirement properly. Secondly, the revenue requirement is unbundled between three major cost centres or business units consist of generation, transmission and distribution and the cost is classified based on demand, energy and customers related charges. Finally, the classified costs are being allocated to different customer categories i.e. Household, Commercial, and Industrial. In summary, this paper proposed a conceptual framework on the cost of specific services that TNB currently charging its customers and served as potential input into the process of developing revised electricity tariff rates. On that purpose, the finding of this COS study finds cost to serve customer varies with the voltage level that customer connected to, the timing and the magnitude of customer demand on the system. This COS conceptual framework could potentially be integrated into a particular tariff structure and serve as a useful tool for TNB.
format Article
author Dr. Wan Nur Rahini Aznie
spellingShingle Dr. Wan Nur Rahini Aznie
Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
author_facet Dr. Wan Nur Rahini Aznie
author_sort Dr. Wan Nur Rahini Aznie
title Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
title_short Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
title_full Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
title_fullStr Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
title_full_unstemmed Conceptual framework of Tenaga Nasional Berhad (TNB) cost of service (COS) model
title_sort conceptual framework of tenaga nasional berhad (tnb) cost of service (cos) model
publisher Universiti Sains Islam Malaysia
publishDate 2017
url http://ddms.usim.edu.my:80/jspui/handle/123456789/15460
_version_ 1645153923774808064
score 13.222552

Similar Items