by providing adequate diversification of fuel and resources. TNB’s varied generation fuel mix decreases the risk of dependency on a single fuel source and increases energy supply reliability. We work closely with the Ministry of Energy Transition and Water Transformation (PETRA) and the Energy Commission in developing the Peninsular Malaysia Generation Development Plan. Through the Planning and Implementation Committee for Electricity Supply and Tariff, an optimised generation fuel mix for Peninsular Malaysia is determined for secure, affordable and sustainable electricity supply. MANAGEMENT APPROACH SUSTAINABILITY DISCLOSURES ON MATERIAL MATTERS TENAGA NASIONAL BERHAD Integrated Annual Report 2023 78 The electricity tariff structure is governed by the Energy Commission based on the IBR framework with built-in incentives to improve our efficiency and for greater tariff transparency to our customers. We are protectedagainst uncontrollable fuel costs with the effective implementation of the Imbalance Cost Pass Through (ICPT) mechanism. The mechanism and cost components in the electricity value chain are described below: We continue to regularly engage with regulatory stakeholders. Testament to our effective engagement are the Regulatory Relationship Strength Index (RRSI) scores that measure stakeholders’ trust in TNB. In 2023, we continued to implement the strategies and initiatives in Regulatory Period 3 (RP3), which spans from 2021 to 2024. We are committed to safeguarding this regime through the next RP with additional strategies to accelerate the nation’s ET journey. Fair and Transparent Tariff Determination Bolstering Regulatory Engagement And remaining are Independent Power Producers (IPP) Interconnection Malaysia - Thailand: 380MW Malaysia - Singapore: 2 x 550 MVA Substations: 87,947 units Coal 58.58% Hydro 4.52% Gas 35.08% Solar 1.61% Others 0.22% Peninsular Malaysia generation mix: 54% TNB market share in Peninsular Malaysia (Installed capacity): 26,095km Length of domestic transmission network: 485 units