respective contract with the customer, revenue is recognised when the performance obligation is satisfied, which may be at a point in time or over time. The Group and the Company do not expect any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group and the Company do not adjust any of the transaction prices for the time value of money. (a) Electricity revenue Revenue from the supply of electricity in Peninsular Malaysia (since 2014), Sabah and Wilayah Persekutuan Labuan (since 2022) is regulated based on certain formulae and parameters as set out in the regulatory implementation guidance under the IBR framework and as agreed with the regulators. The allowedrevenue in each year is calculated as the sum of actual revenue earned and any applicable adjustments, such as those related to the Annual Regulatory Adjustment (‘ARA’), allowance or top-up by the Government and other income adjustment mechanisms as described in the Guidelines on Electricity Tariff Determination. The contract with customers is for the supply of electricity based on tariff rates as set out in the provision of the Electricity Supply Act 1990. Collection of the contract consideration from customers is considered probable. The promise to supply electricity represents a promise to transfer a series of distinct goods that are substantially the same and that have the same pattern of transfer to the customer. The performance obligation to deliver electricity is satisfied over time as the customers simultaneously received and consumed the benefits provided by the Group’s and the Company’s performance. Hence, electricity revenue is recognised over time by the Group and the Company when electricity is consumed by customers. NOTES TO THE FINANCIAL STATEMENTS 31 December 2023 TENAGA NASIONAL BERHAD Integrated Annual Report 2023 280 31 REVENUE (CONTINUED) Accounting Policy (continued) (a) Electricity revenue (continued) Generally,