Actual base tariff billed to the customers remains unchanged. The ICPT over or under recovery is recognised in the statement of profit or loss, presented separately from revenue. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 FINANCIAL STATEMENTS Sec 5 283 33 OPERATING EXPENSES Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Cost of sales: - Energy cost 40,842.7 49,710.3 39,329.0 49,827.9 - Transmission cost 2,090.9 2,084.3 1,922.7 1,918.6 - Distribution cost 8,055.1 7,275.4 7,656.7 6,882.4 50,988.7 59,070.0 48,908.4 58,628.9 Administrative expenses 3,413.2 3,038.4 1,833.7 1,774.3 Other operating expenses 2,969.2 2,503.7 801.3 789.9 57,371.1 64,612.1 51,543.4 61,193.1 Operating expenses include the following items: Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million Purchases from Independent Power Producers (‘IPPs’) 15,498.4 17,999.5 31,283.8 36,101.1 Fuel costs 19,452.3 25,084.51,688.0 6,892.3 Non-Executive Directors’ remuneration: - Fees and allowances 2.7 3.3 2.6 3.2 - Other emoluments 0.6 0.4 0.6 0.4 Auditors’ remuneration: - PricewaterhouseCoopers PLT, Malaysia - Statutory audit 4.4 3.9 1.6 1.4 - Audit related services 1.9 1.9 1.3 1.4 - Member firm of PricewaterhouseCoopers International Limited - Statutory audit 5.9 4.6 0 0 - Others - Statutory audit 0.1 0 0 0 - Non-audit services - Tax related services 0.2 0.2 0 0.1 - Other non-audit services 0 1.5 0 0.2 Staff costs (Note 34)* 3,885.8 3,798.1 2,670.1 2,591.0 PPE: - Depreciation 7,783.7 7,500.7 5,060.3 4,790.2 - Written off/Impairment 53.5 61.8 29.4 33.5 NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 284 33 OPERATING EXPENSES (CONTINUED) Operating expenses include the following items: (continued) Group Company 2023 RM’million 2022 RM’million 2023 RM’million 2022 RM’million ROU assets: - Depreciation 3,482.0 3,901.8 5,709.6 6,236.0 Impairment losses on investments in: - Subsidiaries 0 0 15.2 18.9 - Associates 35.9 68.6 0 0 - Joint ventures